tt^iEess 


LIBRARY 

OF  THE 

University  of  California. 


GIFT    OF 


Ibe 

Bby 
ner, 


Mr^.  James  L-deFreherv 

Class 


as  to  give  no  onense  lo  any  person,  nor  xo  pieBeni  an  nnpui>mesB-iiKo  uppearance. 

4,  To  proceed  quietly  and  promptly  to  his  seat,  place  his  hat  in  its  itroper  place,  and 
pursue  his  ^vork. 

P.  To  be  polite,  neat,  orderly,  quiet,  prompt,  energetic  and  Bystematic  in  all  things  and 
at  all  times. 

G.  To  give  his  undivided  attention  to  Boll<call,  and  during  Its  entire  time  refrain  from 
doing  anything  else. 

7.  To  hold  no  communication  with  any  student  at  any  time,  or  in  any  place  in  the  Col- 
lege Kooms,  without  first  obtaining  the  consent  of  a  teacher. 

8.  To  refrain  from  stopping  at  the  entrance  to  the  College  Building,  or  on  the  sidewalk 
on  Post  Street^^uywhere  between  Kearny  and  Montgomery  Streets,  when  going  to  or  from 
School. 

9.  To  bring  a  written  note  of  excuse  from  parent  or  guardian  for  all  tardiness  or  absence 
as  explained  in  the  instructions  to  students. 

10.  To  bring  a  written  request  from  parent  or  guardian,  if  obliged  to  leave  before  the 
close  of  any  scliool  session. 

11.  To  present  a  written  notice  from  parent  or  guardian,  in  advance,  for  all  intended 
absence  from  school. 

12.  Not  to  leave  his  seat  without  first  obtaining  written  permission  from  a  teacher,  except 
tu  go  into  a  class  or  speak  to  a  teacher. 

l.-i.  To  keep  in  good  order  the  desk,  seat  and  drawer  appropriated  to  his  use,  and  to  put 
all  waste  paper  into  tho  basket  proviUed  for  that  purpose. 

14.  To  abstain  from  smoking,  or  from  tho  use  of  tobacco  in  any  form  while  in  or  about 
the  College  Building. 

15.  To  engage  only  in  bis  regular  studies,  except  b.7  special  permission,  and  do  nothing 
to  interfere  with  a  feliow-btudent  in  any  way,  or  in  any  manner  idle  away  his  own  time. 

IG.  To  call  only  on  his  teachers  for  instruction,  and  not  to  copy,  or  borrow  for  exam- 
ination, the  work  or  exercises  of  any  other  pupil. 

17.  To  show  in  every  action  and  movement  that  he  is  determined  to  acquire  every  neces- 
sary qualification  for  a  firBt-class,  honest  and  industrious  business  man. 

18.  To  observe  all  oral  or  written  regulations,  (not  herein  specified)  made  by  the  pro- 
prietors or  teachers,  Irom  time  to  time,  for  securing  good  order  and  rapid  advancement. 

©:©F©RTMBWT  BOOK. 

A  Deportment  Book  w  11  be  kept,  in  which  the  names  of  pupils  neglecting  to  perform 
any  of  their  Duties  will  be  recorded,  stating  the  facts  in  the  case,  which  will  be  open  to  the 
inspection  of  parents,  guardian  and  visitors;  and  upon  four  entries  being  recorded  against 
tho  same  student  ho  will  bo  reported  to  his  parents  or  guar 'ian,  if  accountable  to  either,  if 
not,  ho  will  bo  required  to  give  some  guarantee  of  a  faithful  attendance  to  his  duties  in  tJie 
future,  or  bo  required  to  withdraw  from  the  school. 


L-,U-.  ^^\\\  A'rr.'b         ^  :^OQC?fS' 

THEORETICAL 


AND 


PRACTICAL 


BOOK-KEEPING, 


BY 


DOUBLE  AND    SINGLE   ENTRY, 


FOR    USE   IN 


Business  Colleges, 

COMMON   SCHOOLS,     HIGH    SCHOOLS    AND    ACADEMIES,    AND 

FOR    SELF-INSTRUCTION. 


SI3£:TIETI3:     TI3:OTTS-A.lSr3D_ I^EIVISEIID- 


1887. 


V-  ^^ 


Entered  according  to  Act  of  Congress,  in  the  year  ISifi, 

By  WILLIAMS  &  EOGEES, 

In  the  office  of  the  Librarian  of  Congress,  at  Washington,  B.C. 


E.  E.  Andrews,  Printer  and  Boolsbinder,  Itorhoster,  N.  V, 


# 


PREFACE. 


WE  do  not  claim  that  we  have  eumiciatecl  any  new  principles  in  the  course  of  stndy  in  the  science  and  practice 
of  book-keeping  contained  in  this  work.  We  do  claim,  however,  that  we  have  arranged  those  already 
established  in  such  a  manner,  and  accompanied  that  arrangement  with  such  clear  and  complete  explana- 
tions, as  will  insure  the  pupil  a  knowledge  of  the  subject,  practically  independent  of  the  instructor. 

While  we  have  studiously  avoided  imnecessary  thedrizing,  we  have  endeavored  to  give  a  competent  reason  for 
every  step  to  be  taken,  believing  that  the  pupil,  if  he  have  the  ability  to  master  the  subject  under  any  circum- 
stances, will  be  able  to  secure,  from  the  reasons  and  illustrations  siven,  a  thorough  knowledge  of  the  science  of 
accounts. 

We  desire  that  the  student's  mind  shall  be  constantly  directed  to  the  matter  m  hand — that  of  learning  practical 
book-keeping — and  not  become  confused  by  abstruse  theories  that  can  be  oi  no  possible  use  to  him  in  pursuing 
the  course  of  study,  nor  of  the  least  value  to  him  in  after  life. 

The  claim  of  this  work  to  superiority  over  all  other  publications  of  its  character  is  based,  particvilarly,  upon 

the  manner  in  which  the  transactions  selected  as  a  basis  of  the  student's  work  have  been  graded,  the  fullness  of 

explanation  of  every  step  to  be  taken,  the  placing  of  such  explanations  in  immediate  proximity  to  the  transactions, 

the  system  of  references  to  the  illustrations  adopted,  the  encouragement  to  progress  in  penmanship  afforded  by 

the  engraved  pages,  the  ability  of  the  pupil  to  rely  upon  himself,  and  the  material  lessening  of  the  labor  of  the 

teacher. 

THE  AUTHOES. 


235965 


DOUBLE  ENTRY  BOOK-KEEPING. 


•  Book-keeping  is  a  record  of  business  transactions.  '  The  object  of  such  record  is  to  enable  the 
proprietor  to  determine,  at  any  time,  the  true  condition  of  the  business. 

'  There  are  two  metliods  of  book-keeping  in  general  use,  *  termed  Single  Entry  and  Double  Entry. 
The  following  explanations  refer  to  the  Double  Entry  method. 

*  The  principal  books  used  are  the  Day  Book,  Journal  and  Ledger. 

'  The  Day  Book,  or  Blotter  as  it  is  sometimes  called,  contains  a  statement  of  the  business  transac- 
tions in  detail.  '  The  record  should  be  made  as  soon  as  the  transaction  takes  place, '  to  guard  against 
errors  which  might  be  occasioned  by  delay  in  making  the  entry. 

'The  Journal  contains  the  Debits  and  Credits,  taken  from  the  Day  Book,  and  arranged  in  a  form 
convenient  for  transferring  to  the  Ledger.  '"  Deciding  upon  and  arranging  the  debits  and  credits  in 
the  Journal  is  called  Journalizing.  "  In  every  journal  entry  the  debits  and^  credits  must  be  equal. 
"  The  Day  Book  and  Journal  may  be  combined,  "  by  writing  the  particulars  regarding  the  transactions 
in  the  Journal,  in  connection  with  the  journal  entry. 

"  The  Ledger  contains  the  final  results,  '*  which  are  exhibited  by  collecting  all  debits  and  credits 
having  the  same  name  under  one  heading.  "Such  a  collection  of  debits  and  credits  is  called  an 
Account.  "An  account  has  two  sides,  "the  left  side  being  called  the  Debit  and  "the  right  side  the 
Credit.     ^  Transferring  the  debits  and  credits  from  the  Journal  to  the  Ledger  is  called  Posting. 

"The  terms  Debit  or  Debtor,  and  Credit  or  Creditor,  may  be  abbreviated:  as,  Dr.  anfl  Cr. 

Other  books,  as  the  Cash  Book,  Bill  Book,  Order  Book,  Invoice  Book,  Sales  Book,  etc.,  will  be 
explained  hereafter. 

"  In  Double  Entry  book-keeping  there  are  three  kinds  of  accounts  aside  from  an  account  with  the 
Proprietor:  accounts  with  Persons,  accounts  with  Property,  and  accounts  representing  Allowances 
made  by  ns,  or  to  us,  for  Interest,  Discount,  Exchange,  Premium,  Storage,  Commission,  Exjjenses, 
etc.,  by  which  we  sustain  Losses  or  realize  Gains. 

Note.— While  it  will  be  necessary,  in  due  time,  for  the  Student  to  become  thoroughly  familiar  with  the  principles 
involved  in  the  rules  given  on  the  following  pages,  he  can  do  so  much  more  easily  and  quickly,  and  with  a  better 
understanding  of  their  application,  if  he  learn  them  as  he  has  occasion  to  apply  them,  than  he  can  by  committing 
them  to  memory  in  advance. 

The  Student,  therefore,  after  reading  carefully  the  following  rules,  examples  and  explanations,  may  proceed  with 
the  work  upon  his  books,  as  instructed  in  the  foot  notes  from  page  to  page.  Each  step  is  go  carefully  explained,  and 
'ie  references  so  fully  given,  that  he  sliould  have  little  difficulty  in  performing  the  work  correctly  and  understandingly. 

The  debits  and  credits  in  any  business  transaction  may  be  determined  by  tlie  following 


TJIKOKKTIOAL    AND    PliACTIOAL    BOOK-KKEPIKO. 


GENERAL    RULES    FOR   JOURNALIZING. 
"  Pkrsoxs  are  Debited, 
•  "Wlieii  they  get  into  our  debt,  and 
'  When  we  get  out  of  tlieir  debt. 

"Property  is  Debited, 
Under  an  appropriate  title,  as  Mdsc,  Real  Estate, 
Cash,  etc.,  wheii  it  comes  into  our  i)ossession. 

"Allom'ances  are  Debited, 
Under  api)ropriate  titles,  as  Interest,  Exchange, 
Commission,  etc.,  when  made  by  us. 

The    ;hree  kinds  of  accounts  mentioned  above  are  divided  into  "two  general  classes,  one  class 
showing  Gains  and  Losses,  and  the  other  Resources  and  Liabilities. 


"  Persox.s  are  Credited, 
•When  we  get  into  their  debt,  and 
'  When  they  get  out  of  our  debt. 

*  Property  is  Credited, 
Under  its  appropriate  title,  when  it  goes  out  of 
our  possession. 

''Allowakces  are  Credited, 
Under  their  appropriate  titles,  when  nuide  to  us. 


"^  Losses. 
An  account  exhibits  a  Loss,  if  the  thing  it  rep- 
resents has  cost  us  more  than  it  has  produced. 

"  Resources. 
An  account  exhibits  a  Resource,  if  it  represents 
property  on  hand,  or  a  debt  owing  to  us. 


"  Gains. 
An  account  exhibits  a  Gain,  if  the  thing  it  rep- 
resents has  produced  us  more  than  it  has  cost. 

''  Liabilities. 
An  account  exhibits  a  Liability,  if  it  represents 
a  debt  owing  by  us. 


"  The  excess  in  an  account  showing  either  a  Resource  or  a  Loss  will  be  on  the  debit  side,  and  "  the 
excess  in  an  account  showing  either  a  Liability  or  a  Gain  will  be  on  the  credit  side. 

SPECIAL  RULES  FOR  JOURNALIZING. 

The  following  additional  rules,  definitions  and  explanations  are  given  to  supplement  and  empha- 
size the  foregoing  general  rules,  as  a  further  aid  to  the  student  in  llie  work  of  journalizing. 


THE  PROPRIETOR. 


Dr. 


"The  Proprietor  is  debited  for  his  liabilities 
assumed  by  the  business,  for  all  amounts  drawn 
by  liim  from  the  business  for  his  private  use,  and 
for  his  net  loss. 


Cr 


"  The  Proprietor  is  credited  for  the  amount  of 
his  investment  on  commencing  business,  for  all. 
.subsequent  investments,  and  for  his  net  gain. 


"The  title  "Stock"  is  sometimes  used  in  place  of  the  proprietor's  name.     The  explanation  for  a 
co-partnership  will  be  givci-  ^lereaftcr. 

CASH. 


Dr. 

'  Cash  is  debited  when  it  is  received. 


Cr. 

'  Cash  is  credited  when  it  is  paid  out. 


"Under  the  title  "Cash"  we  include  Currency,  Bank  Checks,  Postal  Orders,  Sight  Drafts,  and 
usually  all  kinds  of  paper  payable  on  demand.  "  The  Dr.  side  of  cash  account  will  always  be  greater, 
when  there  is  any  difference,  "because  we  cannot  i)ay  out  more  than  we  have  received,  "and  the 
difference  will  show  the  cash  on  hand,  '^  which  difference  is  a  Resource.  "  When  all  the  cash  has  been 
paid  out,  the  account  will  balance. 

MERCHANDISE 
Dr.  j  Cr. 

"Mdsc.  is  d('bited  for  its  cost,  wlion  bought.  |       *'Mdsc.  is  (•r('(lii;cd  for  its  i)roceo(ls,  wlicn  sold. 

"Under  the  title  "Mdse."  we  generally  include  all  goods  the  proprietor  is  dealing  in  as  a  business. 
"Sometimes,  however,  for  the  purpose  of  exhibiting  results  in  detail,  separate  accounts  are  opened, 
as  "Flour,"  "Pork,"  "Beef,"  etc.,  instead  of  including  all  under  the  general  heading  "Mdse." 
"  Since  tlie  Dr.  side  of  Mdse.  account  shows  the  cost  of  tlie  goods,  and  the  ^'r    jide  tlie  jiroceeds,  the 


THEOKKTIOAL    AND    PRACTICAL    HOOK-KKEPINO.  < 

difEerence  will  show  the  gum  or  loss,  providing  tlie  goods  luivo  all  been  sold.  "If  there  is  an  Inventory 
(goods  unsold),  its  value  must  first  be  added  to  the  proceeds  from  sales,  and  the  difference  will  then 
show  the  gain  or  loss.  ^  The  above  rule  and  explanations  will  also  apply  to  other  property,  as  Keal 
Estate  (houses  and  lands),  Bank  Stock,  Railroad  Stock,  etc.,  excepting  that  an  account  should  be 
opened  with  each,  under  its  api)r()priate  title. 

EXPENSE. 


Dr. 

"  Expense  is  debited  with  any  outlay  for  carry- 
ing on  the  business. 


Or. 

'*  Expense  is  credited  when  anything  of  value 
is  disposed  of,  which  was  previously  debited  to 
Expense. 


"Under  the  title  "Expense"  we  generally  include  such  items  as  Rent,  Salaries,  Office  Books, 
Office  Furniture,  Fuel,  Light,  etc.  "If,  as  in  the  case  of  Mdse.,  it  is  desired  to  show  results  in  detail, 
separate  accounts  may  be  opened  with  "Rent,"  "Salaries,"  "Office  Furniture,"  etc.,  instead  of 
including  aU  these  items  under  the  general  heading  "Expense."  "* Expense  account  usually  shows 
a  loss. 

BILLS  RECEIVABLE. 
Dr.  Cr. 


"  Bills   Receivable   is   debited   for  the   written 
promises  to  pay,  of  other  parties,  when  received. 


*"  Bills  Receivable  is  credited  for  the  written 
promises  to  pay,  of  other  parties,  when  paid  or 
otherwise  disposed  of. 


"  Under  the  title  "  Bills  Receivable "  we  include,  generally.  Notes  and  Time  Drafts.  "'The  Dr. 
side  of  the  account  will  always  be  larger,  when  there  is  any  difference,  "  because  we  cannot  dispose  of 
a  greater  amount  than  we  have  received.  "The  difference  in  the  account  will  show  the  Bills  Receiv- 
able on  hand,  **  which  difference  is  a  Resource.  *  The  account  will  balance  when  the  Bills  Receivable 
have  all  been  disposed  of,  because  such  bills  are  always  debited  and  credited  at  their  face  value. 


BILLS   PAYABLE. 


Dr. 


"  Bills  Payable  is  debited  for  our  written  prom- 
ises to  pay,  when  redeemed  (that  is  paid). 


Cr. 


•*  Bills  Payable  is  credited  for  our  written  prom- 
ises to  pay,  when  issued  (that  is  given). 


•^  Under  the  title  "  Bills  Payable  "  we  include,  generally,  Notes  and  Accepted  Time  Drafts.  ™  The 
Cr.  side  of  the  account  will  always  be  larger,  when  there  is  any  difference,  "  because  we  cannot  redeem 
a  greater  amount  than  we  have  issued.  "  The  difference  in  the  account  will  show  the  Bills  Payable 
outstanding,  "which  difference  is  a  Liability.  "The  account  will  balance  when  all  the  Bills  Payable 
have  been  redeemed,  because  such  bills  are  always  debited  and  credited  at  their  face  value. 

INTEREST  AND  DISCOUNT. 


Dr. 

"  Interest  and  Discount  are  debited  when  allowed 
to  others. 


Cr. 

"  Interest  and  Discount  are  credited  when  al- 
lowed to  us. 


"  Interest  is  the  compensation  allowed  for  the  use  of  money. 

"  Discount  is  the  allowance  made  for  the  payment  of  a  debt  before  it  is  due. 

"When  the  Dr.  side  of  Interest  and  Discount  account  is  the  greater,  the  difference  shows  a  loss; 
when  the  Cr.  side  is  greater,  the  difference  shows  a  gain.  *•  The  above  rule  will  apply  also  to  such 
accounts  as  Exchange,  Premium,  Collection,  Storage,  Commission,  etc. 

Additional  rules  and  explanations  will  be  given  when  required,  in  connection  with  the  work  to  be 
performed. 

EXAMPLES  IN  JOURNALIZING. 

Note.— The  following  twenty-nine  Examples,  representing  a  series  of  business  transactions,  are  designed  to  illus- 
trate the  application  of  the  principles  embodied  in  the  foregoing  General  and  Special  Rules,  and  to  serve  as  references 
to  aid  the  student  in  the  work  of  journalizing.  These  examples  are  not  to  be  written  up  by  the  student,  but  should  be 
carefully  studied  as  follows:  He  should  first  read  the  Day  Book  Record  for  the  transaction,  then  observe  how  it  is 
Journalized,  and  also  study  the  explanations  which  follow,  consulting  the  rules  to  which  references  are  made.  After 
reading  all  of  the  examples,  the  student  may  commence  the  work  upon  his  books,  as  instructed  in  note  on  page  13. 


THEORETICAL   AND    PRACTICAL   SOOK-KEEpING. 
EXAMPLE    No.  1. 


DAT    BOOK    KECOED. 


rriEHg.  TOTAIi. 


JOURNAL   ENTRY   FOR   SAME. 

DR. 


J.  T.  Smith  commenced 
business  this  day,  and 
invested  Cash, 


5000 


Cash,  Dr. 

To  J.  T.  Smith,  Cr. 


5000 


5000 


Why  is  Cash  Dr.  in  above  journal  entry?     Because  Cash  is  received  (see  39,  page  6). 
Why  is  J.  T.  Smith  Cr.  ?     Because  the  proprietor  should  have  credit  for  his  investment  (see  37, 
page  6). 

EXAMPLE    No.  2. 

DAY    BOOK    RECORD.  JOURNAL   ENTRY    FOR   SA-ME. 


J.  T.  Smith  owes  C.  B. 
Hall,  on  account,  which 
is  to  be  paid  from  the 
biisiness. 


500 


J.  T.  Smith,  Dr. 

To  C.  B.  Hall.  Cr. 


500 


500 


Why  is  Smith  Dr.  ?    Because  the  proprietor  is  Dr.  for  liabilities  assumed  by  the  business  (see  30, 
page  6). 

Why  is  Hall  Cr.  ?    Because  the  proprietor  is  in  his  debt  (see  24,  page  6). 


EXAMPLE    No.  3. 


DAY    BOOK    RECORD. 


JOURNAL   ENTRY    FOR   SAME. 


Bought  of  J.  E.  Morse, 

for  Cash, 
200  bbls.  Flour,  at  6.00, 


1200 


Mdse.,  Dr. 


To  Cash,  Cr. 


1200 


1200 


Why  is  Mdse.  Dr.  ?    Because  it  is  bought  (see  47,  page  6).     Why  is  Cash  Cr.  ?    Because  it  is  paid 
out  (see  40,  page  6). 

EXAMPLE    No.  4. 

DAY   BOOK    RECORD.  JOURNAL   ENTRY    FOR   SAME. 


Sold  Geo.  Andrews,  for 

Cash, 
50  bbls.  Floui-,     at  6.75, 


337 


50 


Cash,  Dr. 


To  Mdse.,  Cr. 


33^ 


50 


337 


50 


Why  is  Cash  Dr.  ?     Because  it  is  received  (see  39,  page  6).     Why  is  Mdse.  Cr.  ?     Because  it  is 
sold  (see  48,  page  6). 

EXAMPLE    No.   5. 

DAT    BOOK    RECORD.  JOURNAL   ENTRY    FOR   SAME. 


Bought  of  E.  N.  French, 

on  account, 
100  bbls.  Beef,   at  14.50, 


1450 


Mdse.,  Dr. 

To  E.  N.  French,  Cr. 


1450 


1450 


Mdse.  is  Dr.  because  it  is  bought  (see  47,  page  6).  Why  is  E.  N.  French  Cr.  ?  Because  we  have 
bought  property  of  him  on  account  ("on  account"  means  that  we  do  not  pay  him  for  it  at  time  of 
purchase),  and  we  therefore  get  into  his  debt  (see  24,  page  6). 


EXAMPLE    No.  6. 


DAY    BOOK    RECORD. 


JOURNAL   ENTRY    FOR   SAME. 


Sold  Reed  &   Mills,  on 

account, 
50  bbls.  Flour,     at  7.00, 
50     "    Beef,  16.00, 


350 
800 


1150 


Reed  &  Mills,  Dr. 

To  Mdse.,  Cr. 


1150 


1150 


Why  are  Reed  &  Mills  Dr.  ?  Because  they  have  bought  property  of  us  on  account  (that  is,  they 
do  not  pay  us  for  it  at  the  time  of  purchase),  and  therefore  get  into  our  debt  (see  23,  page  6).  Why 
is  Mdse.  Cr.?  Because  it  is  sold  (see  48,  page  C).  Since  Flour  and  Beef  were  both  journalized  as 
Mdse.  when  bought,  we  now  credit  Mdse.  tw  one  amount  for  the  sale. 


MEOBteTtCAL    AND    t-RACTlCAt    BOOK-liEEPIK(i. 


EXAMPLE    No.  7. 


DAT    BOOK    RECORD. 


JOURNAL   KNTRY   FOR   SAME. 

I>B. 


Paid   rent    of    store    in 
Ciisb, 


50 


Expense,  Dr. 


To  Cash,  Cr. 


50 


50 


Why  is  Expense  Dr.?     Because  rent  is  an  item  of  cost  in  carrying  on  the  business  (see  54,  page  7). 
Cash  is  Cr.  because  it  is  paid  out  (40,  page  6). 


EXAMPLE    No,  8, 


DAY    BOOK    RECORD. 


.TOURNAL   ENTRY   FOR   SAME. 


Paid  E.  N.  French,  cash 
to  apply  on  account, 


450 


E.  N.  French,  Dr. 

To  Cash,  Cr. 


450 


450 


Why  is  E.  N.  French  Dr.  ?  Because  we  get  out  of  his  debt,  to  the  extent  of  $450  (see  23,  page  6). 
Since  we  gave  him  Cr.  Jan.  5  (see  Ex.  No.  5)  for  $1450,  we  must  now  make  him  Di-.  $450,  the  amount 
we  pay  him,  in  order  that  his  account  may  show  the  exact  amount  we  still  owe  him.  Cash  is  Cr. 
because  it  is  paid  out  (40,  page  6). 

EXAMPLE    No.  9. 

DAY   BOOK    RECORD.  JOURNAL   ENTRY   FOR   SAME. 


Eeceived  cash  of  Eeed 
&  Mills,  to  apply  on 
account, 


200 


Cash,  Dr. 

To  Reed  &  Mills,  Cr. 


200 


200 


Cash  is  Dr.  because  it  is  received  (39,  page  0).  Reed  &  Mills  are  Cr.  because  they  get  out  of  our 
debt  to  the  extent  of  $300  (24,  page  6).  Since  we  made  them  Dr.  (see  Ex.  No.  6)  for  $1150,  we  must 
now  give  them  Cr.  $300,  in  order  that  their  account  may  show  the  exact  amount  they  still  owe  us. 


EXAMPLE    No.   10. 


DAY   BOOK    RECORD. 


JOURNAL   ENTRY    FOR   SAME. 


Bought  of  E.  D.  Harris, 
J00bbls.Pork,atl3.00, 

Gave  my  note  at  10  days 
in  payment. 


1200 

Mdse.,  Dr. 

To  Bills  Pay.,  Cr. 


1200 


1200 


Mdse.  is  Dr.  because  it  is  bought  (47,  page  6).     Bills  Payable  is  Cr.  because  our  written  promise 
to  pay  has  been  issued  (see  68,  page  7). 


EXAMPLE    No.   11. 


DAY    BOOK    RECORD. 


JOURNAL   ENTRY    FOR   SAME. 


Received  of  Reed  &  Mills, 
their  note  at  ten  days, 
to  apply  on  account, 


600 

Bills  Eec'v,  Dr. 

To  Reed  &  Mills,  Cr. 


GOO 


600 


Bills  Receivable  is  Dr.  because  the  written  promise  of  another  party  has  been  received  (59,  page 
7'.  Reed  &  Mills  are  Cr.  because  they  get  out  of  our  debt  to  the  extent  of  $600,  our  claim  for  that 
sum  now  being  in  the  form  of  Bills  Receivable  (24,  page  6). 


EXAMPLE    No.   12. 


DAY    BOOK    RECORD. 


JOURNAL   ENTRY   FOR   SAME. 


Gave  E.  N.  French  my 
note  at  ten  days,  with 
interest,  to  apply  on 
account. 


500 


E.  N.  French,  Dr. 

To  Bills  Pay.,  Cr. 


500 


500 


E.  N.  French  is  Dr.  because  we  get  out  of  his  debt  to  the  extent  of  $500  (23,  page  6),  our  liability 
now  being  in  the  foriii  of  Bills  Payable  for  that  amount.  Bills  Payable  is  Cr.  because  our  written 
promise  to  pay  has  been  issued  (68,  page  7). 


10 


THEORETICAL    ANT)    PRACTICAL    BOOK-KEEPING. 
EXAMPLE    No.   13. 


DAY    BOOK    RECORD. 


ITEMS.         TOTAL. 


.lOURNAL    EKTKY    EOK   SAME.   • 

DR. 


Sold  Chas.  Hamlin, 
50  bbls.  Flour,  at  7.00, 
50     "     Pork,      14.00, 

Rec'd  payment  by  his 
note  at  ten  days,  with 
interest, 


350 

700 


1050! 


Bills  Eec'v,  Dr. 

To  Mdse.,  Cr. 


1050 


1050 


Bills  Receivable  is  Dr.  because  the  written  promise  of  another  party  is  received  (59,  page  7).    Mdse. 
is  Cr.  because  it  is  sold  (48,  page  6). 

EXAMPLE    No.    14. 

DAY    BOOK    RECORD.  JOURNAL    ENTRY    FOR   SAME. 


Sold  F.  E.  Clark, 

25  bbls.  Beef,  at  16.00, 
Rec'd  in  payment.  Cash, 
Balance  on  account. 


400 

1^ 

150 
250 

Cash,  Dr. 

F.  E.  Clark,  Dr 


To  Mdse.,  Cr. 


150 
250 

' 

400 

Cash  is  Dr.  because  received  (39,  page  6).  F.  E.  Clark  is  Dr.  because  he  gets  into  our  debt  (23, 
page  6).  Mdse.  is  Cr.  because  sold  (48,  page  6).  The  above  form  is  equivalent  to  making  Clark  Dr. 
400  and  Mdse.  Cr.  400  in  one  entry,  and  then  making  a  second  entry,  Cash  Dr.  150,  Clark  Cr.  150. 
The  above  form  saves  one  entry. 

EXAMPLE    No.    15 

DAY    BOOK    RECORD.  JOURNAL    ENTRY    FOR   SAME. 


Bought  of  Milo  Sage, 

SOObbls.  Flour,  at  6.50, 
Paid  him  Cash, 
Balance  on  account, 


950 
1000 


1950 


OS 
C  o 


Mdse.,  Dr. 


To  Cash,  Cr. 
"  M.  Sage,  Cr. 


1950 


950 
1000 


Mdse.  is  Dr.  because  bought  (47,  page  6).    Cash  is  Cr.  because  paid  out  (40,  page  6).     Sage  is  Cr.  be- 
cause we  get  into  his  debt  (24,  page  6).     This  form  saves  one  entry,  as  explained  in  the  preceding  example. 


EXAMPLE    No.    16. 


DAY    BOOK    RECORD. 


JOURNAL   ENTRY    FOR    SAME. 


Bought  of  0.  F.  Wilson, 
House  and  Lot,  for 
Cash, 


1500 

Real  Estate,  Dr. 

To  Cash,  Cr. 


1500 

i 

1500 

Real  Estate  is  Dr.  because  bought  (see  53,  page  7).     Cash  is  Cr.  because  paid  out  (40,  page  6). 

EXAMPLE    No,    17. 


DAY    BOOK    RECORD. 


JOURNAL   ENTRY    FOR   SAME. 


Bought  of  W.  E.  Holt, 
200  bbls.  Beef,  at  16.00, 

Paid  him  Cash, 

My  note  at  15  days  for 
balance. 


600 
2000 

2600 

Mdse.,  Dr. 


To  Cash,  Cr. 
"  Bills  Pay.,  Cr. 


2600 


600 
2000 


Mdse.  is  Dr.  because  bought  (47,  page  6).     Cash  is  Cr.  because  paid  out  (40,  page  6).     Bills  Payable 
is  Cr.  because  we  issue  our  written  promise  to  pay  (68,  page  7). 


EXAMPLE    No.    18, 


DAY    BOOK    RECORD. 


JOURNAL    ENTRY    FOR   SAME. 


Bought  Safe  for  Office, 
and  paid  for  same  in 
Cash, 


200 

1 

Expense,  Dr. 

To  Cash,  Or. 


200 


200 


Expense  is  Dr.  because  the  Safe  is  an  item  of  cost  in  carrying  on  the  business  (54,  page  7).     Cash 
is  Cr.  because  paid  out  (40,  page  6). 

Note. — In  cases  like  the  above,  where  part  payment  is  made  at  the  time  of  purchase,  the  transactions  may,  if  desired, 
be  journalized  as  follows:  debit  or  credit  the  person,  as  the  case  may  be,  with  Ihe/uU  amount  in  one  entry,  and  in  another 
entry  credit  or  debit  him  with  the  payment. 


THEORETICAL   AND    PRACTICAL   BOOK  KEEPING. 


n 


EXAMPLE    No.   19. 


DAT    BOOK   RECORD. 


Sold  A.  D.  Larkin, 

50  bbls.  Flour,  at  7.50, 

25    "     Beef,       16.00, 

Rec'd  in  payment.  Cash, 

His  note  at  two  months 

for  balance, 


ITEMS. 

TOTAL. 

375 
400 
275 

775 

500 

JOURNAL   ENTRY    FOR   SAME. 

DB. 


Cash,  Dr. 
Bills  Rec'v,  Dr. 


To  Mdse.,  Cr. 


275 
500 


775 


Cash  is  Dr.  because  received  (30,  page  6).     Bills  Receivable  is  Dr.  because  received  (59,  page  7). 
Mdse.  is  Cr.  because  sold  (48,  page  6). 


EXAMPLE    No.   20. 


DAT   BOOK    RECORD. 


JOURNAL   ENTRT    FOR   SAME. 


J.  T.  Smith  drew  cash 
from  the  business  for 
private  use. 


350 


J.  T.  Smith,  Dr. 

To  Cash,  Cr. 


350 

350 

Smith  is  Dr.  because  he  is  the  proprietor  and  draws  this  money  for  private  use  (36,  page  6).    Cash 
is  Cr.  because  paid  out  (40,  page  6). 


EXAMPLE    No.   21. 


DAY   BOOK    RF.CORD. 


JOURNAL    ENTRY    FOB   SAME. 


Rec'd  of  F.  E.  Clark,  to 

balance  account. 
Cash, 
His  note  at  45  days  for 


100 
150 

250 

Cash,  Dr. 
Bills  Rec'v,  Dr. 

To  F.  E.  Clark,  Cr. 


100 
150 


250 


Cash  is  Dr.  because  received  (39,  page  6).     Bills  Receivable  is  Dr.  because  received  (59,  page  7). 
Clark  is  Cr.  because  he  gets  out  af  our  debt  (24,  page  6). 


EXAMPLE    No.   22. 


DAT   BOOK    RECORD. 


JOURNAL   ENTRT    FOR   SAME. 


Paid  M.  Sage,  to  apply 
on  account.  Cash, 

My  note  at  30  days,  with 
interest. 


250 
500 

750 

M.  Sage,  Dr. 


To  Cash,  Cr. 
"   Bills  Pay.,  Cr. 


750 


250 
500 


Sage  is  Dr.  because  we  get  out  of  his  debt,  in  part  (^3,  page  6).     Cash  is  Cr.  because  paid  out  (40, 
page  6).     Bills  Payable  is  Cr.  because  we  issue  our  written  promise  to  pay  (68,  page  7). 


EXAMPLE    No.  23. 


DAT   BOOK    RECORD. 


JOURNAL   ENTRT    FOR   SAME. 


Paid  my  note  of  the  10th 
inst.,  in  favor  of  E.  D. 
Harris,  in  Cash', 


1200 


Bills  Pay.,  Dr. 

To  Cash,  Cr. 


1200 


1200 


Bills  Payable  is  Dr.  because  our  written  promise  to  pay  is  redeemed  (07,  page  7).     Cash  is  Cr. 
because  paid  out  (40,  page  6). 


EXAMPLE    No.   24. 


DAT    BOOK    RECORD. 


JOURNAL   ENTRT   FOR   SAME. 


Rec'd  Cash  of  Reed  & 
Mills,  for  their  note  of 
11th  inst.,  due  to-day. 


600 


Cash,  Dr. 

To  Bills  Rec'v,  Cr. 


600 


600 


Cash  is  Dr.  because  re^ceived  (39,  page  6).     Biils  Receivable  is  Cr.  because  the  written  promise  to 
pay  of  another  is  disposed  of  (60,  page  7). 


THEORETICAL    AND     PRACTICAL    »OOK  KEEWNG. 


EXAMPLE    No.   25. 


DAY   BOOK    RECORD. 


ITEM.'!. 

TOTAL. 

501 

OS 

500 

1 

08 

JOURNAL   ENTRY    FOR  SAME. 

DR. 


Paid  my  note  of  12th  inst. 
in  favor  of  French,  due 
to-day,  with  interest, 
in  Casli, 

Face  of  note, 

Interest  to  date,  13  days, 


Bills  Pay.,  Dr. 
Interest,  Dr. 


To  Cash,  Cr. 


500 
1 


08 


501 


08 


Bills  Payable  is  Dr.  because  our  written  promise  is  redeemed  (G7,  page  7).     Interest  is  Dr.  because 
it  is  allowed  to  others  (75,  page  7).     Cash  is  Cr.  because  paid  out  (40,  page  6). 


EXAMPLE    No.   26. 


DAY    BOOK    RECORD. 


JOURNAL   ENTRY    FOR   SAME. 


Kec'd  cash  of  Chas.  Ham- 
lin, for  his  note  of  13th 
inst.,  due  to-day,  with 
interest. 

Face  of  note. 

Interest  to  date,  13  days. 


1052 

28 

1050 

2 

28 

Cash,  Dr. 


To  Bills  Rec'v,  Cr. 
"  Interest,  Cr. 


1052 


1050 
2 


28 


Cash  is  Dr.  because  received  (39,  page  6).     Bill  Receivable  is  Cr.  because  disposed  of  (60,  page  7). 
Interest  is  Cr.  because  it  is  allowed  to  us  (76,  page  7). 


EXAMPLE    No.  27. 


DAY   BOOK    RECORD. 


JOURNAL  ilNTRY    FOR   SAME. 


Prepaid  my  note  of  17th 
inst.,  in  favor  of  W.  E. 
Holt, 
Discount  off.  8  days. 
Paid  balance  in  Cash, 


2  67 
199733 


2000 


Bills  Pay.,  Dr. 


To  Discount,  Cr. 
"    Cash,  Cr. 


2000 


2 
1997 


67 
33 


Bills  Payable  is  Dr.  because  our  written  promise  has  been  redeemed  (07,  page  7).     Discount  is  Cr. 
because  it  is  allowed  to  us  (76,  page  7).     Cash  is  Cr.  because  paid  out  (40,  page  6). 


EXAMPLE    No.  28. 


DAY    BOOK    RECORD. 


JOURNAL    ENTRY    FOR   SAME. 


A.  D.  Larkin  prepaid  his 
note  of  19th  inst.. 

Discount  off,  1  mo.  22 
days, 

Rec'd  balance  in  Cash, 


4 
495 


500 


Discount.  Dr. 
Cash.  Dr. 


To  Bills  Rec'v,  Cr. 


i 

4 

33 

495 

67 

500 

Discount  is  Dr.  because  it  is  allowed  to  others  (75,  page  7).  Cash  is  Dr.  because  received  (39, 
page  6).  Bills  Receivable  is  Cr.  because  the  written  promise  to  pay  of  another  party  is  disposed  of 
(60,  page  7). 

EXAMPLE    No.   29. 

DAY   BOOK    RECORD.  JOURNAL   ENTRY    FOR   SAME. 


Paid  Clerks'  Salaries  to 
date,  in  Cash, 


100 


Expense,  Dr. 

To  Cash,  Cr. 


100 


100 


Expense  is  Dr.  because  Salaries  is  an  item  of  cost  in  carrying  on  the  business  (54,  page  7).     Cash 
is  Cr.  because  paid  out  (40,  page  6). 

Note  to  Stvdent. — Having  carefully  read  the  preceding  pages,  you  miiy  now  begin  the  work  upon  your  book.s. 
First  copy  into  your  Day  Book  tlie  busincs.s  tran.sa(tion.s  for  January,  a.s  given  on  the  following  pages.  A.s  you  are  sup- 
posed to  be  the  proprietor  of  the  business,  you  will  write  your  name  in  the  blank  lines  in  the  first  two  transactions  on  the 
next  page.  In  copying  you  may  omit  from  your  Day  Book  the  ligures  ut  the  left  of  the  tran.sactions,  as  they  are  simply 
reference  figures,  to  assist  in  journalizing.  The  explanations  for  their  use  will  be  given  hereafter.  You  should  make  your 
pages  as  nearly  as  possible  like  the  following,  in  substance,  penmanship  and  arrangement.  Read  foot  notes  carefully,  as 
all  are  important  to  an  understanding  of  the  work.  Should  the  tran.sactions  given  on  a  page  in  the  text  book  not  fill  a  page 
in  your  Day  Book,  add  a  sufficient  numl)er  from  the  following  page  to  do  so,  but  do  not  in  any  ca.se  divide  a  transaction. 


THEORETICAL    AND   PRACTICAL    l«)OK-KEEPING. 


13 


L.  No.  I 
p.  8. 


Ex.  No.  2, 
p.! 


v/ 


/ 


Ex.  No.  3 
p.». 


Ex.  No. 
p.  8. 


Ex.  No.l 
p.  8. 


Bx.No.e 
p.  8. 


s/ 


V 


•^^g^^^^^^g-^^^/  /  yj^j^ 


^l^U^£.d^ 


^-zrf'-z^ 


li^'-i^-iS^l. 


El.No.7 
P.9. 


Ex.  No.  8 
p.9. 


Ex.  No.  9, 
p.9. 


i.No.4, 
p.  8. 


Ex.No.8, 
p.9. 


/^^ 


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o>: 


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y-Gk-^^f- 


.^^ 


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u 


THEORETICAL    AND    PRACTICAL    BOOK-KEEPING. 


El.  No.  5, 
page  8. 


Ex.  No.  3, 
pages. 


Bz.  No.  9, 
paged. 


Ex.  No.  6, 
page  8. 


Ex. 
No  20, 
page  II. 


Ex.  No.  4, 
pages. 


Ex.  No.  8, 
pages. 


Ex.  No  3, 
pages. 


"^g^^^^^^^-g^^^  y^yj^f'- 


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cr^> 


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era 
era 


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'-^^-z^  ^z^-T-T^ /:z-ti^(?</r 


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THEORETICAL    AND    PRACTICAL    BOOK-KEEPING. 


15 


^^J/J'/'- 


Ex.  No.  6, 
pages. 


Ex. 
No.  18, 
page  10. 


Et.  No.  3, 
page  9. 


Ex.  No.  8. 
paged. 


See 
Prin.  39, 
page  6. 


See 

Prin.  47, 

page  6. 

2i,j>age6. 


Prl]i.», 
page?. 

40,page6. 


See 
Prill.  39, 
page  6. 


Prin.  i7, 

pages. 

10,  pages. 


'  ^T^Zy' ,fZ-i;-i?^i 


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16 


THEORETICAL   AND   PRACTICAL    BOOKKEEPING. 

DIRECTIONS    FOR   JOURNALIZING. 


Having  completed  the  work  of  copying  the  foregoing  transactions  into  your  Day  Book,  you  may 
now  journalize  them.  As  explained  in  9  and  10,  on  page  5,  journalizing  i.s  deciding  uj)on  the  proper 
debits  and  credits  of  the  business  transactions  recorded  in  the  Day  Book,  and  arranging  them  m  the 
Journal  in  a  form  convenient  for  transferring  (posting)  to  the  Ledger.  In  journalizing,  therefore,  vou 
will  need  your  Day  Book  and  Journal  before  you. 

The  Examples  commencing  on  page  8  are  designed  to  assist  you  in  the  work  of  journalizing. 
To  illustrate:  Ecad  the  first  transaction  in  your  Day  Book;  then  turn  to  page  8  and  compare 
it  with  the  Day  Book  Eecord  of  Example  No.  1.  As  you  will  see,  tliey  read  substantially  alike, 
and  precisely  the  same  principles  are  involved  in  each.     If,  therefore.  Example  No.  1  be  journalized 

To  J.  T.  Smith    Cr.  5000  ^^^^  journal  entry  for  Example  No.  1,  page  8),  it  follows  that  the 

first  transaction  in  your  Day  Book  should  be  journalized     ^^  ',„   ^cm.    ^     ^    r,  .„„^ 

•'  •'  •"  io  Student,  Cr.  4000 

Turn  to  your  Journal,  therefore,  and  make  the  journal  entry  as  shown  in  the  engraved  form  below. 
iTou  will  observe  that  the  debits  are  entered  on  the  left  side  and  the  credits  on  the  right  side  of  the 
dividing  line.  The  abbreviations  Dr.  and  Cr.  are  omitted  from  the  Journal.  The  sign  "  To"  indicates 
that  the  item  before  which  it  is  placed  is  a  credit.  After  you  have  made  the  entry  in  your  Journal,  turn 
at  once  to  your  Day  Book,  and,  in  the  column  at  the  left,  check  the  transaction  thus  v/,  to  prevent 
omissions. 

Next  proceed  to  journalize  the  second  transaction  in  your  Day  Book.  By  reference  to  page  13  of 
the  text  book,  you  will  see  that  the  small  reference  figures  at  the  left  of  this  transaction  indicate  that 
you  are  to  consult  Example  No.  2,  on  page  8,  for  assistance  in  making  the  journal  entry.  Again,  the 
reference  figures  for  transaction  of  January  2,  page  13,  refer  you  to  Example  No.  3,  page  8;  for 
transaction  of  January  4,  to  Example  No.  5,  and  so  on. 

By  referring  in  this  manner  to  an  example  containing  the  same  conditions  as  the  transaction  you 
are  journalizing,  you  can  readily  determine  the  proper  debits  and  credits  for  all  of  the  transactions  in 
January.  In  consulting  these  examples  for  assistance  in  making  the  journal  entries,  you  should  at  the 
same  time  study  the  rules  and  explanations  given  under  them,  that  you  may,  as  soon  as  possible, 
become  familiar  with  the  principles  of  debit  and  credit. 

After  journalizing  all  of  the  transactions  for  January,  present  your  Journal  to  the  teacher  for 
approval. 


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THEOUETICAL    AND    PRACTICAL    BOOKKEEPING.  17 

DIRECTIONS  FOR  POSTING. 

After  you  have  journalized  all  of  the  transactions  for  January,  and  your  Journal  has  been 
approved  by  the  teacher,  your  next  work  will  be  to  post.  Posting,  as  explained  in  14  to  20,  on  page  5, 
IS  transferring  the  debits  and  credits  from  the  Journal  to  the  Ledger,  placing  those  of  the  same  name 
under  one  heading,  for  the  purpose  of  exhibiting  the  final  results  of  the  business.  The  simple  process 
of  posting  is  not  difficult;  it  is  purely  mechanical,  but  it  requires  constant  watchfulness  and  care  to 
perform  the  work  without  making  errors. 

A  few  Ledger  accounts  are  shown  on  page  19,  to  give  you  an  idea  of  the  form  for  opening 
accounts  in  your  Ledger;  and  you  will  find  explicit  instructions  for  posting  given  below,  under  "  Guide 
for  posting  the  Journal  entries  for  January." 

You  are  to  follow  those  instructions  to  the  very  letter,  performing  the  work  step  by  step  as 
directed.  To  illustrate:  In  the  instructions  for  posting  the  first  Journal  entry  (Jan.  1),  you  are  told 
to  "write  your  own  name  at  the  top  of  page  1  in  your  Ledger."  Before  reading  the  instructions 
further,  you  should  turn  to  your  Ledger  and  perform  the  work  exactly  as  directed;  then  turn  again 
to  the  instructions  and  see  what  the  next  step  is,  and  take  that,  and  so  on  until  you  have  posted  the 
entire  entry. 

Then  take  the  instructions  for  the  second  entry  in  your  Journal,  and  proceed  in  the  same  manner 
as  with  the  first  entry,  performing  the  work  precisely  as  indicated. 

After  you  have  posted  a  few  of  the  journal  entries  by  the  aid  of  the  instructions,  lay  aside  your 
text  book  and  jirocced  without  it  if  possible. 

You  may  now  place  your  Journal  and  Ledger  before  you,  and  commence  posting  in  accordance 
with  the  following 

GUIDE   FOR   POSTING  THE  JOURNAL  ENTRIES  FOR  JANUARY. 

.    •  JANUARY    1.      (See  this  Entry   In  your  Journal.) 

First,  write  youc  name  at  the  top  of  page  1  in  your  Ledger,  on  the  upper  line,  in  a  bold,  plain 
hand.  (See  form  of  Ledger  on  page  19.)  Next,  on  the  riffhi  hand  side  of  the  heavy  line  in  the 
center — Cr.  side — enter,  in  the  date  column,  the  date,  "'Jan.  1."  (The  explanation  column  will  be 
left  blank  for  the  present.)  Next,  in  the  journal  page  column,  enter  the  page  of  your  Journal, 
"1."  Next,  in  the  amount  column,  enter  the  amount,  "4000."  Next  turn  to  your  Journal,  and 
place  a  check  mark,  thus  "\/,"  opposite  the  student's  name,  to  indicate  that  the  item  has  been 
posted.  (See  Journal  form  on  page  10.)  Before  reading  any  further,  perform  the  above  work 
precisely  as  instructed.  Next  write  "  Cash,"  in  a  bold,  plain  hand,  at  the  top  of  page  2  in  your 
Ledger.  Next,  on  the  left  hand  side  of  the  heavy  line  in  the  center — that  is,  on  the  Dr.  side — 
enter  in  the  date  column,  the  date,  "Jan.  1."  Next,  in  the  Journal  page  column,  enter  the  page  of 
your  Journal,  "1."  Next,  in  the  amount  column,  enter  the  amount,  "4000."  Next  turn  to  your 
Journal,  and  place  a  check  mark,  thus  "v/,"  opposite  Cash,  to  indicate  that  this  item  has  been  posted. 

JANUARY  1,   SECOND  ENTRY.     (See  this  Entry  in  your  Journal.) 

Turn  to  Student's  account,  on  page  1  in  your  Ledger,  and  on  the  left  hand  side — that  is  the  Dr. 
side  of  his  account — enter,  in  the  date  column,  the  date,  "Jan.  1."  Next,  in  the  journal  page  column, 
enter  the  page  of  your  Journal,  "1."  Next,  in  the  amount  column,  enter  the  amount,  "300."  Next 
turn  to  your  Journal  and  check  the  item  thus  'W"  N^ext  write  "J.  S.  Baker's"  name  at  the  top 
of  pcge  S  in  your  Ledger.  Next,  on  the  right  hand  side — that  is  the  Cr.  side  of  his  account — enter,  in 
the  date  column,  the  date,  "Jan.  1."  Next  enter  in  the  journal  page  column  the  page  of  your  Jour- 
nal, "1."  Next,  in  the  amount  column,  enter  the  amount,  "'300."  Next  turn  to  your  Journal  and 
check  the  item  thus  "s/." 

JANUARY  2.     (See  this  Entry  in  your  Journal.; 

Open  an  account  with  "Merchandise"  at  the  top  of  page  4  in  your  Ledger;  then,  on  the  left 
hand  side— that  is  the  Dr.  side— enter,  in  the  date  column,  the  date,  "Jan.  2";  next  enter  the  page 
of  your  Journal,  "1";  next  enter  the  amount,  "650";  next  turn  to  your  Journal  and  check  Mdse. 
thus  "\/."  Next  go  to  Cash  account,  on  page  2  in  your  Ledger,  and  enter,  on  the  Cr.  side— that  is 
the  right  hand  side— the  date,  "  Jan.  3  ";  next  enter  the  journal  page,  "  1 ";  next  enter  the  amo-int, 
"  650  ";  next  turn  to  your  Journal  and  check  thus  "  \/," 


18  THEOKEI'ICAL    AND    PRACTICAL   BOOK-KEEPING. 

JANUARY  3.     (See  this  Entry  in  your  Journal.) 

Turn  to  Merchandise  account,  on  page  4  in  your  Ledger,  and  enter,  on  the  Dr.  side — le^f  hand 
side— in  the  date  column,  the  date,  "3,"  the  ditto  marks — thus  " — being  placed  under  Jan.  to  save 
repetition;  next  enter  the  journal  page,  "  1  ";  next  enter  the  amount,  "  750  ";  next  check  the  item  i!i 
the  Journal  thus,  "y/-"'  Next  open  an  account  with  H.  W.  Stevens,  at  the  top  of  page  5  in  you;- 
Ledger,  and  enter,  on  the  Or.  side  of  his  account,  the  date,  "Jan.  3";  the  journal  page,  "1";  the 
amount,  "  750";  then  turn  to  the  Journal  and  check  as  before  instructed. 

JANUARY  4.      (See  the  Journal  Entry.) 

Turn  to  Cash  account,  on  page  3  in  your  Ledger,  and  enter,  on  the  Dr.  side— left  hand  side — of 
the  account,  the  date,  "4,"  placing  ditto  marks  under  the  month;  next  enter  the  journal  page, 
"1";  next  enter  the  amount,  "187.50";  next  turn  to  your  Journal  and  check.  Next  turn  to  Mer- 
chandise account,  on  page  4,  and  enter,  on  the  Cr.  side,  the  date,  "Jan.  4";  next  the  journal  page, 
"1";  next  the  amount,  "187.50  ";  next  turn  to  your  Journal  and  check. 

JANUARY  5.      (See  the  Journal  Entry.) 

Open  an  account  -with  "Ford  ■!':  Co."  in  the  middle  of  page  5  in  your  Ledger,  and  enter,  on  the 
Dr.  side  of  the  account,  the  date,  '•Jan.  5";  next  enter  the  journal  page,  "1";  next  enter  the 
amount,  "635.00";  next  turn  to  your  Journal  and  check.  Next  turn  to  Mdse.  account,  on  page  4. 
and  enter,  on  the  Cr.  side,  the  date,  "5";  next  the  journal  page,  "1";  next  the  amount,  "625.00." 

JANUARY  6.      (See  the  Journal  Entry.) 

Open  an  Expense  account  at  the  top  of  page  6.     Enter,  on  the  Dr.  side,  the  date,  "Jan.  6  ";  next 
the  journal  page,  "1";  next  the  amount,  "25";   next  check  in  the  Journal.     Next  turn  to  Cash 
account,  on  page  2,  and  enter,  on  the  Cr.  side,  the  date,  "6";  the  journal  page,  "  1";  the  amount,  ~ 
"25";  then  check  in  the  journal. 

JANUARY  8.     (See  the  Journal  Entry.) 

Turn  to  H.  W.  Stevens'  account,  on  page  5,  and  enter,  on  Dr.  side,  the  date,  ".Jan.  8";  journal 
page,  "1";  amount,  "250";  then  check  in  the  Journal.  Next  turn  to  Cash  account,  on  page  2,  and 
enter,  on  the  Cr.  side,  the  date,  the  journal  page,  the  amount;  then  check  in  the  Journal. 

JANUARY  9. 

On  Dr.  side  of  Cash  account  enter  the  date,  the  journal  page,  the  amount;  then  check  in  the 
Journal.     Next,  on  the  Cr.  side  of  Ford  &  Co.'s  account,  enter  the  date,  journal  page,  amount. 

JANUARY  10. 

Post  on  the  Dr.  side  of  Cash  account,  as  instructed  heretofore,  and  check  in  the  Journal;  then 
post  on  the  Cr.  side  of  Mdse.  account. 

JANUARY  11. 

Post  on  the  Dr.  side  of  Stevens  account,  and  on  the  Cr.  side  of  Cash  account,  remembering  to 
check  in  the  Journal  after  each  potting. 

JANUARY  12. 

Post  on  Dr.  side  of  Mdse.  account.  Next  open  an  account  with  James  T.  lloag,  at  the  top  of 
page  7,  and  credit  him. 

Note. — You  will  observe  that,  in  every  journal  entry,  an  equal  amoiTnt  is  posted  to  both  sides  of  the  Ledger,  thus 
keeping  it  constantly  in  balance.  This  is  the  principle  upon  which  Double  Entry  bookkeeping  is  based  and  from 
which  it  takes  its  name. 

You  should  now  be  able  to  proceed  with  the  posting  without  further  assi-stance.  In  case  you  should  be  unable 
to  do  so,  however,  for  additional  practice  apply  to  tlie  teacher  for  a  neparate  xheet  of  leilgcr  paper,  and  post  the  same 
entries  again. 

In  opening  new  occouuts  iu  your  Ledger  hereafter,  leave  cnehalf  of  a  page  spaic  for  each,  until  otherwise 
instructed. 


THEOKETICAL    AND    PKACTICAL    BOOK-KEEPING. 


19 


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Explanation. Joomal  Page.  Amcnnt. 


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20 


THEORETICAL    AND    PKACl'lOAL    BOOKKEEPING. 


TRIAL    BALANCE. 

"  A  Trial  Balance  is  a  test  to  ascertain  whether  the  debit  and  credit  sides  of  the  Ledger  are  equal. 
"■The  Trial  Balance  does  not  prove  the  work  absolutely  correct,  '"as  errors  may  be  made  wliicli  will 
not  affect  the  equality  of  the  Ledger,  "such  as  posting  to  the  wrong  account,  errors  in  journalizing, 
erroneous  computations,  etc. 

"^  If  the  footings  of  the  Trial  Balance  are  equal,  however,  it  is  generally  regarded  as  evidence  that 
the  work  upon  the  Ledger  is  correct,  *  although  the  careful  book-keeper,  in  addition  to  such  proof, 
will  usually  go  over  his  computations  and  posting  the  second  time. 

You  may  now  proceed  to  take  a  Trial  Balance  for  January. 

INSTRUCTIONS  FOR  TAKING  JANUARY  TRIAL  BALANCE. 
Commence  with  the  first  account  in  your  Ledger,  which  is  Student's,  and  foot  the  Dr.  side  of  the 
account,  *' placing  the  footing  in  small  lead-pencil  figures,  **  close  up  to  the  line  on  which  the  last  item 
is  posted,  as  illustrated  below. 


Student. 

J  88 
Jan. 

1 

1 

300 

188 
Jan. 

1 

1 

i 

4000 

ii 

18 

2 

75 

375 

The  above  illustration  shows  how  the  Dr.  side  of  Student's  account  will  appear  in  the  Ledger 
after  it  has  been  footed  for  the  trial  balance.  **  Do  not  draw  lines  under  the  columns  to  be  added,  as 
the  peculiar  position  of  the  footing  serves  to  distinguish  it  from  the  other  items  in  the  account. 
"  Make  your  pencil  footings  plain  and  distinct,  but  as  small  as  possible.  When  there  is  but  one  item 
on  either  side  of  an  account,  no  pencil  figures  are  necessary;  for  example,  see  credit  side  of  Student's 
account  above.  Next  write  your  name  on  the  first  line  in  the  trial  balance  sheet,  "  placing  the  Dr. 
footing  of  your  account  in  the  left  hand  column  and  the  Cr.  footing  in  the  right  hand  column,  as 
illustrated  in  the  trial  balance  given  below. 

You  will  then  turn  to  the  next  account  in  your  Ledger — Cash.  Add  both  sides  of  the  account,  as 
before  instructed,  placing  the  footings  in  pencil  in  the  position  described  above,  and  then  transfer 
them,  with  the  title  of  the  account — Cash — to  the  next  line  in  the  trial  balance  sheet.  Continue  in 
this  manner,  footing  and  carrying  results  to  the  trial  balance,  until  the  footings  of  all  of  the  accounts 
in  the  Ledger  have  been  transferred.  ^  When  the  footings  of  both  sides  of  an  account  are  equal  they 
should  be  omitted  from  the  trial  balance,  as  in  the  case  of  the  account  with  James  T.  Hoag.  You 
may  rule  up  Hoag's  account  in  your  Ledger  at  once.  (See  first  .ruling  of  Jiis  account,  page  39.)  "If 
your  trial  balance  is  correct,  the  footings  of  the  sides  will  be  equal,  and  will  correspond  in  all  parti^-ulars 
with  the  one  given  below.     Always  vsf.  rod  inl-  in  rnlivr.    Write  your  own  name  in  place  of  "  Student," 


^^^^-^-^^^^g^^-^  t^/  /^V- 


/ 


7 


THEORKTlCAlj    AKD   tRACTlCiVL    BOOKKEEPING.  2i 

ERRORS  IN  TRIAL  BALANCES. 

••  N"o  rule  or  set  of  rules  can  be  given  for  the  certain  detection  of  errors  in  trial  balances,  save, 
perhaps,  a  careful  review  of  the  entire  work.  If  only  one  error  has  been  made,  however,  tlie  following 
short  tests  will  frequently  disclose  it,  and  they  should  be  first  applied,  as  involving  much  less  labor 
tlian  going  over  the  entire  work. 

First.— °*  If  the  error  be  exactly  $1,  $10,  $100,  $1000,  etc.,  it  is  very  likely  in  the  additions,  either 
of  the  Ledger  accounts  or  the  columns  of  the  trial  balance. 

Second. — "An  error  may  have  been  made  in  carrying  the  footings  of  the  accounts  from  the  Ledger 
to  the  trial  balance,  or  °'  an  account  may  have  been  omitted  entirely  from  the  trial  balance. 

Third. — '"If  an  amount  has  been  omitted  in  posting,  the  trial  balance  will  be  exactly  that  amount 
out  of  balance.  °°  Look  through  the  Journal  or  other  books  from  which  you  have  posted,  and  see  if 
you  can  find  an  item  of  the  same  amount  as  the  error,  which  has  been  omitted  in  posting. 

Fourth. — '""If  an  amoitnt  has  been  posted  to  the  wrong  side  of  the  Ledger,  the  trial  balance  will 
be  just  twice  that  amount  out  of  balance;  ""  therefore  look  through  the  Journal  for  an  item  of  one-half 
the  amount  of  the  error. 

Fifth. — '"*  If  the  error  be  divisible  by  9,  it  is  quite  likely  to  have  been  caused  by  a  transposition  of 
figures;  as,  $42  posted  $24  would  make  an  error  of  $18,  which  is  divisible  by  9;  again,  $345  posted 
$453  would  make  an  error  of  $108,  which  is  divisible  by  9,  etc. 

Sixth. — "^Should  all  of  the  foregoing  tests  fail  to  disclose  the  error,  it  will  be  necessary  to  review 
the  work,  '"from  the  date  of  the  last  trial  balance,  in  the  following  manner:  ""Examine  carefully 
each  journal  entry,  to  be  certain  that  the  debits  and  credits  are  equal,  and  '°°  then  see  that  these  debits 
and  credits  have  been  transferred  correctly  to  the  Ledger,  ""placing  a  check  mark  in  pencil,  thus  \/,  in 
the  Ledger  against  each  item  examined  and  found  to  be  correctly  posted.  '°®  If,  after  thus  checking 
the  work,  you  find  an  amount  not  checked,  you  may  conclude  that  the  item  has  been  posted  twice. 
""  Merely  examining  the  posting  without  checking  will  not  answer  the  purpose;  every  item  must  be 
checked  to  locate  the  error. 

Note. — Questions  upon  a  few  of  the  leading  principles  involved  in  the  work  of  the  foregoing  set  are  given  below, 
and  you  should  be  prepared  to  answer  them  satisfactorily  if  called  upon  by  the  teacher  at  any  lime  to  do  so.  Before 
proceeding  further,  therefore,  study  carefully  the  answers  to  the  following 

QUESTIONS  FOR  REVIEW. 

Pages. — 'What  is  book-keeping?  'What  is  the  object  of  it?  'What  are  the  principal  books 
employed  in  Double  Entry  called?  'Describe  the  use  of  the  Day  Book.  '  Tlie  Journal.  "The 
Ledger.     '"  What  is  Journalizing?    *"  Wliat  is  Posting? 

Page  6. — '"When  are  Persons  debited?  "When  are  Persons  credited?  ''When  is  Property  debited? 
''When  is  Property  credited? 

Page  20.— "'What  is  a  Trial  Balance?  ''Why  does  it  not  prove  the  Ledger  pbsolutely  correct? 
"When  may  an  account  be  omitted  from  the  Trial  Balance? 

Note. — After  you  have  become  familiar  with  the  principles  covered  by  the  above  questions,  proceed  to  copy  into 
your  Day  Book  the  transactions  for  February,  as  given  on  the  following  pages.  In  all  computations,  if  tlie  fraction  is 
five  mills  or  over,  add  another  cent;  if  less  than  five  mills,  drop  the  fraction.  Strive  to  make  the  work  upon  your 
books  show  constant  progress  in  penmanship,  by  imitating  as  nearly  as  possible  the  forms  given  you  to  copy. 


■/.^^  Rochester,  IM.Y.,  :U2€^^^y^,  iss-i. 


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'AFTER  DATE^2:^t^^t;^<FROM;iSB  TO  PA.Y 


Value  received 


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22 


THEORETICAL    AND    PRACTICAL    BOOK-KEEPING. 


See 
Prill.  S9, 

.'p.  6. 


*f;, 


See 

Prin.64, 

p.  7. 

M,Pk<. 


No.  10, 
p.*. 


89,  p.  6. 


El. 

No.  11, 

p.  9. 


47.  p.  ». 


Ex. 
No.  14. 
p.  10. 


38,  p.  6. 
24,  p. «. 


Ex. 

No   13, 
p.  10. 


/  /fr- 


Ex. 
No.  23. 
p.  11. 


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THEOUETICAL    AND    PRACTICAL    I'.OOKiKKEPINU. 


23 


Ex.  Xo.  12. 


Ex.  No.  l.">. 
jtage  lU. 


For  the 
tiiinpler 
tiunsac- 
tions  no 
refer- 
ences will 
hereafter 
be  given. 


Ex.  No.  19, 
page  IL 


Ex.  No.  2!. 
paffeli. 


Ex.  No.  20, 
pacrelL 


Ex.  No.  28 
l>age  12. 


Ex.  No.  17, 
page  10. 


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THKOKETICAL    AKD    PUACTICAL    BOOR-KEEPING. 


'>-'i'i>^>iZ^i^  /f^  //v^ 


Ex. 
No.  21, 
page  11. 


No.  28, 


Er.  No.  7, 
P6«e9. 


Ex. 
Ko.  10, 
IMSet. 


Ex. 
No.JS, 
page  12. 


Ex. 
No.  U, 
page  10. 


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TUEOKETICAL    AND    PKACTIUAL    Ji<  lOK-KKEPING. 


25 


^6,/rj^ 


No.  18, 


Ejt. 

No.  27. 


Ex.  No.  7, 


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Note. — After  you  have  completed  copying  the  foregoing  transactions  into  your  Day  Book,  before  proceeding  to 
journalize,  draw  up  on  foolscap  paper  all  of  the  notes  mentioned  in  the  transactions  for  the  month.  (See  form  of  not« 
on  page  21.) 

Interest  and  Discount,  in  the  first  fifty-four  pages  of  this  ■work,  are  computed  at  6  per  cent.,  on  a  basis  of  365  days, 
and  in  the  remainder  of  the  book  on  a  basis  of  360  days  for  a  year.  See  also  No.  1,  at  bottom  of  page  46,  and  note 
No.  1,  bottom  of  page  51. 

After  writing  the  notes  called  for  above,  proceed  to  journalize  the  transactions  for  February  as  you  did  those  of 
January,  referring  when  necessary  to  the  principles  and  examples  indicated  by  the  figures  at  the  left  of  the  transactions 
to  assist  you  in  the  work.  As  before  stated,  you  should,  when  referring  to  the  rules  and  explanations,  study  them  care- 
fully, that  j'ou  may,  as  soon  as  possible,  journalize  independently,  by 'becoming  familiar  with  the  principles  of  debit 
and  credit.  No  reference  figures  are  given  for  a  few  of  the  simpler  transactions  in  February,  it  being  presumed  that 
you  are  sufficiently  acquainted  with  the  principles  to  enable  you  to  journalize  them  without  such  assistance. 

When  you  have  completed  the  journalizing  for  February,  present  your  journal,  together  with  the  forms  of  noter 
called  for  above,  to  the  teacher  for  approval.     You  will  then  be  prepared  to  begin 

POSTING    FEBRUARY. 

As  the  business  for  February  is  a  continuation  of  that  of  January,  it  will  be  posted  under  the 
same  ledger  headings,  new  accounts  being  opened,  of  course,  as  they  nuiy  be  required.  Since  full 
instructions  for  posting  were  given  in  January,  you  will  probably  not  require  any  further  assistance, 
as  the  work  of  posting  is  always  substantially  the  same. 

Should  you  need  further  aid,  however,  in  the  work,  instructions  for  posting  a  few  of  the  first 
journal  entries  in  February  arc  given  below. 

GUIDE   FOR  POSTING   FEBRUARY. 

FEBRUARY   1        (See  this  Entry  In  your  Journal.) 
Turn  to  Wells,  Johnson  &  Co.'s  account,  on  page  8  in  your  Ledger,  and  enter,  on  the  Dr.  side  of 
their  account,  the  date,  "Feb.  1";  the  page  of  your  Journal,  "3";  the  amount.  "200";  then  turn 
to  jour  Journal  and  check  this  item. 


^6  I'HEORETtCAL   AND    tbACTtCAL   feOOk-KEEMNG. 

Next  turn  to  Cash  account,  on  page  2,  and  enter,  on  the  Cr.  side,  the  date,  "Feb.  1  ";  the  journal 
page,  "3";  the  amount.  "300";  then  turn  to  your  Journal  and  check. 

FEBRUARY   1.     (Second   Entry.) 

Turn  to  Expense  account,  on  page  6,  and  enter,  on  the  Dr.  side,  the  date,  journal  page  and 
amount;  then  check  in  the  Journal.  Next  turn  to  Cush  account,  on  page  2,  and  enter,  on  the  Or. 
side,  the  date,  journal  page  and  amount;  then  check  in  the  Journal. 

FEBRUARY  2. 

Turn  to  Mdse.  account,  on  page  4,  and  post  on  the  Dr.  side.  Next  open  an  account  with  Bills 
Payable  at  the  top  of  page  9  in  your  Ledger.  (Bills  Payable  will  require  one  page  space.)  Post,  on 
the  Cr.  side,  the  date,  journal  page  and  amount.  Eemember  to  check  every  item  in  the  Journal  as 
soon  as  posted. 

FEBRUARY  3. 
Post  on  the  Dr.  side  of  Cash  account,  and  on  the  Cr.  side  of  Mdse.  account. 

FEBRUARY  5. 

Open  an  account  with  Bills  Keceivable  at  the  top  of  page  10  in  your  Ledger.  (Bills  Receivable 
will  require  one  page  space.)  Post,  on  the  Dr.  side,  the  date,  journal  page  and  amount.  Turn  to 
Moore  &  Collins'  account,  and  credit  them  with  same  amount. 

FEBRUARY  6. 

Post  on  Dr.  side  of  Mdse.  account.  Next  open  an  account  with  David  Bailey  at  the  top  of  page 
11,  and  credit  him  with  same  amount. 

FEBRUARY  7. 

Post,  on  the  Dr.  side  of  Cash  account,  "100";  on  the  Dr.  side  of  Jas.  T.  Hoag's  account,  "56.25"; 
on  the  Cr.  side  of  Mdse.  account,  "  156.25." 

Note. — Continue  in  tliia  manner  until  you  have  posted  the  entire  month  of  February.  In  opening  new  accounts 
hereafter  in  tliis  month,  give  each  account  one-half  a  page  space,  excepting  Interest  and  Discount,  which  will  require 
one  page  each. 

After  you  have  completed  the  posting  for  the  entire  month,  your  next  work  will  be  the 


TRIAL  BALANCE   FOR  FEBRUARY. 

Proceed  to  take  a  Trial  Balance  for  February,  in  accordance  with  the  instructions  for  the  January 
Trial  Balance,  given  on  page  20.  In  footing  the  accounts  for  February,  add  in  the  January  footing 
also. 

Eemember  that  the  footings  are  to  be  in  pencil.  Make  small,  plain  figures,  and  place  them  close 
up  to  the  line  on  which  the  last  item  in  the  account  is  posted,  as  instructed  in  88,  page  20. 

Ford  &  Co.'s  account  balances;  it  is  therefore  to  be  ruled  up  (see  form  of  ruling  on  pages  38  and 
39),  and  omitted  from  your  Trial  Balance. 

When  all  the  accounts  in  your  Ledger  have  been  footed  and  transferred  to  the  Trial  Balance,  it 
should  agree  in  all  respects  with  the  Trial  Balance  given  below. 

Note  No.  2. — If  your  trial  balance  docs  not  prove,  turn  to  page  21,  and  apply  tlie  tests  for  finding  errors  in  the  exact 
order  given.  If,  after  checking  over  the  entire  posting  precisely  as  instructed  in  Rule  6,  you  do  not  find  the  error,  hand 
your  trial  balance  and  books  to  the  teacher,  who  will  suggest  further  steps  to  be  taken. 


•tfifiOUEllCAL    AND    JPKACTIUAL    iJOOK-KEfet'lNb. 


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Note. — Questions  upon  some  of  the  principles  involved  in  tlie  proceding  set  are  given  below,  and  you  should  he 
prepared  to  answer  them  if  called  upon  to  do  so.  Before  proceeding  furtlier,  therefore,  study  carefully  the  answers  to 
the  following. 

QUESTIONS  FOR  REVIEW. 

Page  7.— «»When  are  Bills  Payable  credited?  "When  debited?  ''When  are  Bills  Receivable 
debited?  *"  When  credited?  "When  are  Interest,  Discount,  etc.,  debited?  "When  credited?  "For 
what  is  Expense  debited?  Tor  what  credited?  "What  is  generally  included  under  the  title  "Cash"? 
"Under  the  title  "Merchandise"?  "Under  the  title  "Expense"?  "Under  the  title  "Bills  Receiv- 
able "?    •»  Under  the  title  "  Bills  Payable  "? 

Note. — Before  proceeding  with  the  month  of  March,  study  the  following  rule  and  explanations  for  the  Bank 
account,  and  also  the  examples  given  below  illustrating  the  rule. 


BANK. 


Dr. 


""  Bank  is  debited  when  a  deposit  is  made  in 
the  bank. 


Cr 


'"  Bank  is  credited  when  a  check  is  drawn  upon 
the  bank. 


"'  The  checks  drawn  by  other  persons,  which  come  into  your  possession,  should  be  journalized  as 
Cash.  Debit  Cash  when  you  receive  such  checks,  and  credit  Cash  when  you  dispose  of  them.  (See 
form  of  check  on  page  28. ) 

Note. —The  following  examples  will  illustrate  the  rule  given  above  for  journalizing  the  Bank  account. 


ga 


TBEOfeETlOAti   AND    i'RACtlCAL   bOOK-lCEEPl>f(J, 

EXAMPLE    No.   30. 


DAT    BOOK   KECORD. 


ITEMS.  TOTAL. 


JOURNAL   ENTRY    FOR   SAME. 

DR. 


Opened  an  account  at  City 
Bank,  and  deposited, 
Cash, 


1500 


City  Bank,  Dr. 

To  Cash,  Cr. 


1500 


1500 


DAT   BOOK    RECORD. 


EXAMPLE    No.   31. 


JOURNAL   ENTRY   FOR   SAME. 


Bo't  of  W.  E.  Brown, 
25  bbls.  Plour,  @  8.00, 

Paid  for  same   by  check 
on  City  Bank, 


200 

Mdse.,  Dr. 

To  City  Bank,  Cr. 


200 


200 


DAY   BOOK    RECORD. 


EXAMPLE    No.  32. 


JOURNAL   ENTRY    FOR   SAME. 


Eeceived  of  H.  A.  Strong, 
his  check  on  First  Na- 
tional Bank,  in  settle- 
ment of  his  account, 


1 

200 

Cash,  Dr. 

To  H.  A.  Strong,  Cr. 


200 


200 


DAY    BOOK    RECORD. 


EXAMPLE    No.   33. 


JOURNAL  ENTRY   FOR   SAME. 


Paid  J.  A.  Richmond,  on 
account,  H.  A.  Strong's 
check  on  First  National 
Bank, 


200 


J.  A.  Eichmond,  Dr. 

To  Cash,  Cr. 


200 


200 


Note. — The  Bank  account  is  sometimes  kept  in  the  Check  Book  instead  of  in  the  Ledger,  the  balance  in  bank 
being  considered  as  cash  on  hand.  When  this  method  is  adopted,  no  entry  is  miide  in  tlie  Cash  account  at  the  time  of 
depositing.  Cash  account  being  credited  when  a  check  is  drawn  upon  the  bank.  This  metliod  of  keeping  the  Bank 
account  will  be  illustrated  in  a  more  advanced  part  of  the  work. 

You  may  now  proceed  to  copy  the  transactions  for  the  month  of  March  into  your  Day  Book.  One  page  only  is 
written  up,  the  remaining  transactions  being  simply  in  the  form  of  a  connecled  statement  or  liistory,  from  which  j'ou 
are  to  copy,  arranging  the  work  as  heretofore.  In  a  few  cases  references  are  made  to  similar  transactions,  to  assist  you 
in  the  proper  arrangement  of  the  work  in  your  Day  Book. 


N 


O.^O^-^ 


Cincinnati,  O., 


<f.^A^x&&y/ 


Fourth  National  Bank, 


Op  Cixcinnati. 


-^.  .„  J^-^^^2-,^^r:?=^>^:^^^^^^^^2^^j^:^^^  or  order. 


DOLIvARS, 


//^f. 


TUEORKTIOAL    AND    PRACTICAL    BUOK-KEEPINO. 


29 


/^/^ 


39,  i>a,re  6, 
18,  pa^  6. 


S!>,  page  fi 
a?,  pnge  fi, 


Ki.  paT>-  7. 
M),  page  6. 


;i4,  iJaije  6, 


17.  iMiffe  (i. 
10,  page  (>. 


6X,  page? 
21,  page  6. 


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«-(^«»^  t 


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30 


THEOKliTlCAL    AND    PRACTICAL    KOOK-KEEPING. 


59,  pa.  7. 
m,  pa.  6. 


«7,  pa.  7. 
40,  pa.  6. 


B7,  pa.  7. 
76,  ])a.  7. 
40,  pa.  6. 


47,  pa.  6. 

68,  pa.  7. 
24,  pa.  6. 


Ex.  30,  p. 


39,  pa.  6. 
m,  pa.  7. 
23,  pa.  e. 
48,  pa.  6. 


89,  pu.  6. 

aO,  pa.  7. 


Ex.  31,  p. 

28. 


76,  pa.  7. 
39,  pa.  6. 
60,  pa.  7. 


39,  pa.  6. 

60,  im.  7. 
76,  pa.  7. 


t  MARCH    7,    188-. 

Sold  Clark,  Sons  &  Bradley,  on  %  3750  lbs.  Lard,  @  13|c.  Arrange  this  transaction  in  your 
Day  Book  same  as  Feb.  19,  page  24.     (See  note  at  bottom  of  page.) 

9. 
Sold  D.  B.  Martin,  20  bbls.  Pork,  @  13.25;   30  bbls.  Flour,  @  8.25;  15  bbls.  Beef,  @  15.75. 
Rec'd  payment  by  note  at  90  days.     (See  form  of  Day  Book  entry,  Feb.  9. ) 

)? 

Paid  February  Gas  Bill,  in  Cash,  4.75.     (See  form  of  Day  Book  entry,  Jan.  6.) 

10. 
Paid  my  note  of  Feb.  36,  favor  of  H.  W.  Stevens,  in  Cash.     (For  amount  of  this  note,  see 
Day  Book,  Feb.  26;  and  for  form  of  Day  Book  entry,  see  Feb.  11.) 

11. 
Eeo'd  Cash  of  Clark,  Sons  &  Bradley,  on  %  200.00. 

12. 
Prepaid  my  note  of  Feb.  23,  favor  of  L.  J.  Peck,  due  Mar.  18th,  433.75.    Discount  to  maturity, 
6  days,  43c.     Balance  paid  in  Cash,  433.32.     (See  Day  Book  form,  Feb.  28.) 

13. 
Paid  David  Bailey,  Cash  on  ofc,  62.50. 

Bo't  of  W.  A.  Bancroft,  600  lbs.  Y.  H.  Tea,  @  65c.;  1600  lbs.  Java  Coffe,  @  28c.  Gave  liim, 
in  payment,  my  note  at  10  days,  with  interest,  500.00;  balance  on  "/c.  (Day  Book  form, 
Feb.  18.) 

14. 

Opened  an  account  at  College  Bank,  and  deposited  Cash,  500.00.  (See  example  No.  30,  on 
page  28,  for  form  of  Day  Book  entry. ) 

15. 
Sold  Ford  &  Co.,  20  bbls.  Flour,  @  8.25;    18  bbls.  Beef,  @  15.75;  30  bbls.  Pork,  @  13.50. 
Rec'd  in  payment.  Cash,  353.50;  their  note  at  10  days,  with  interest,  300.00;  balance  on 
<yc.     (See  Day  Book  form,  March  6. ) 

16. 
Rec'd  Cash  of  Ford  &  Co.,  for  their  note  of  Feb.  21st,  due  to-day.     (See  your  Day  Book,  Feb. 
21,  for  amount  of  this  note.) 

17. 

Paid  J.  S.  Baker,  Cash  in  full  of  '^.     (See  his  '^  in  your  Ledger  for  amount  you  owe  him.) 

18. 
Bo't  of  II.  W.  Stevens,  100  bbls.  Salt,  @  3.15,  and  paid  for  same  by  check  on  College  Bank. 
(See  Example  No.  31,  on  page  28,  for  form  of  Day  Book  entry,  and  form  of  check  on 

page  28.) 

19. 

D.  B.  Martin  prepaid  his  note  of  9th  inst.,  due  June  10th,  748.75.  Discount  to  maturity,  83 
days,  10.22.     Rec'd  Cash  for  balance,  738.53.     (See  Day  Book  form,  Feb.  23.) 

Sold  D.  V.  Bell,  for  Cash,  50  bbls.  Salt,  @  2.55. 

20. 
Rec'd  Cash  of  Moore  &  Collins,  for  their  note  of  5tli  inst.,  due  to-day,  with  interest.     Face  of 
note,  500.00;  interest  to  date,  15  days,  1.23.     (See  Day  Book  form,  Feb.  17.) 

21. 
Deposited  Cash  in  College  Bank,  1200.00. 

22. 

Sold  Wardwell  &  Vance,  for  Cash,  10  bbls.  Pork,  @  13.75;  10  bbls.  Beef,  @  15.50. 

Note. — Whenever  the  fiactiou  is  five  mills  or  over,  add  another  cent;  when  less  than  live  mills,  drop  the 
fraction. 


THEOKKTICAL   AND    PBACl'lCAL    BUUKKEEPING. 


81 


39,  pa.  6. 
53,  pn.  7. 


36,  pa.  6. 
10,  pa.  6. 


67,  pa.  7. 
75,  |iii.  7. 
Ill,  p.  37. 


23,  pa.  6. 
Ill,  p.  27. 


23. 
Sold  Henry  F.  Mixer,  the  House  and  Lot  No.  718  Main  St.,  for  Cash,  2300.00. 

24. 
Student  ( )  drew  Cash  from  the  business,  for  private  use,  125.00. 

25. 
Eeo'd  of  Moore  &  Collins,  their  note  at  20  days,  to  balance  ofc,  130.30.     (See  Day  Book  form, 

Feb.  5th.) 

26. 

Sold  Sickles,  Stover  &  Jackson,  800  lbs.  Java  Coffee,  @  32c. ;   180  lbs.  Y.  H.  Tea,  @  85c. 
Kec'd  in  payment,  Cash,  209.00;  balance  on  % 

?? 

Paid  my  note  of  13th  inst.,  favor  Bancroft,  due  to-day,  with  interest,  by  check  on  College 

Bank.     Face  of  note,  500.00;  interest  to  date,  13  days,  1.07.     (See  Day  Book  form,  Feb. 

25.) 

27. 

Gave  W.  A.  Bancroft  a  check  on  College  Bank,  to  apply  on  <yc,  500.00. 

jj 

Eec'd  Cash  of  Sickles,  Stover  &  Jackson,  on  "fe,  50. 00. 

28. 
Eec'd  Cash  of  Ford  &  Co.,  for  their  note  of  loth  inst.,  due  to-day,  with  interest.     Face  of 
note,  300.00;  interest  to  date,  13  days,  64c. 

29. 
Paid  Book-keeper's  salary  for  the  month  in  Cash,  75.00. 

30. 
Eec'd  Cash  of  Clark,  Sons  &  Bradley  on  "jc,  100.00. 

31. 
Deposited  Cash  in  College  Bank,  3500.00. 

Paid  Eent  of  Store,  by  check  on  College  Bank,  25.00. 


Note. — Copy  tl)e  Inventories  as  given  below  into  your  Day  Booli,  immediately  following  tlie  Irnnsactions  for 
March.  When  the  inventory  includes  a  long  list  of  goods,  a  separate  book,  called  the  "Inventory  Book,"  may  be 
employed. 

RESOURCE    INVENTORIES,   MARCH   31,   188-. 


MERCHANDISE. 


100  bbls.  Flour, 
50     "      Salt, 
GOO  lbs.  Y.  H.  Tea,  - 
800     "    Java  Coffee, 

OflBce  Safe,  valued  at 
"      Books, 


EXPENSE. 


7.00, 

700 

2.1.3, 

106 

50 

65c. 

390 

28c. 

224 
350 

1420 

50 

300 

50 


'"An  Inventory  represents,  generally,  property  on  hand,  as  in  the  case  above.  "*It  may,  however, 
represent  a  debt  owing  to  ns  or  owing  by  us,  such  as  interest  accrued  on  notes,  unpaid  rent,  etc.  "*  An 
Inventory  may,  therefore,  show  either  a  resource  or  a  liability. 

""  In  business,  the  inventory  of  goods  on  hand  is  usually  found  by  going  through  the  store,  weigh- 
ing, measuring  or  counting  the  articles,  '"  tlieir  value  being,  estimated  usually  at  the  price  at  which 
they  could  then  be  purchased.  ""  In  some  kinds  of  wholesale  business  it  is  advantageous  to  keep  what 
is  called  a  "Stock  Book,"  from  which  the  quantity  of  goods  on  hand  can  be  determined  af  any  time, 
and  with  much  less  labor  than  by  the  method  described  above. 


32  THKORETICAL    AND    PirACTICAL    BOOKKEEPING. 

Note.— Having  completed  copying  the  Day  Book  for  Marcli,  journalize  the  transactions,  consulting  tlie  examples 
and  rules  to  which  references  are  made,  as  you  may  find  it  necessary.  After  you  have  journalized  the  entire  month, 
before  commencing  to  post,  write  up,  ou  foolscap  paper,  the  checks  mentioned  in  the  transactions  of  March  13  and  26 
(see  form  of  check  on  page  28),  and  present  them,  with  your  Journal,  to  the  teacher  for  approval. 

POSTING    MARCH. 

The  business  of  March  being  a  continuation  of  that  of  January  and  February,  it  will  be  posted 
under  the  same  ledger  headings,  opening  such  new  accounts  as  may  be  required. 

Give  all  new  accounts  in  this  month  one-half  of  a  page  space,  excepting  College  Bank,  which  will 
require  one  page. 

BALANCE   SHEET. 

After  you  have  completed  the  posting  for  March,  you  may  next  "'make  out  a  "Balance  Sheet," 
for  the  purpose  of  ascertaining  the  exact  condition  of  the  business  at  the  present  time. 

'"'The  Balance  Sheet  as  illustrated  on  page  34  combines  with  the  Trial  Balance  a  statement, 
exhibiting  in  a  condensed  and  convenient  form  for  reference,  the  Resources^  Liabilities,  Losses  and 
Gains  of  the  business.  In  performing  this  work,  it  is  of  the  utmost  importance  to  you  that  you  do 
not  merely  copy  the  form  of  Balance  Sheet.  To  do  the  work  understaudingly,  securing  a  knowledge 
of  the  relations  of  the  various  accounts  to  the  business,  it  is  absolutely  essential  that  you  take  each 
step  in  the  order  indicated,  and  perform  the  work  precisely  as  directed  in  the  instructions  which  follow. 

GUIDE   FOR  MAKING  BALANCE  SHEET  FOR  MARCH. 

If  you  have  not  in  your  Trial  Balance  book  a  form  ruled  to  correspond  with  the  one  shown  on 
page  34,  you  will  rule  a  sheet.  First  take  a  trial  balance  of  your  Ledger,  precisely  as  instructed  for 
January  and  February;  that  is,  foot  the  accounts  in  pencil,  and  carry  the  footings  to  the  first  two 
columns  of  your  Balance  Sheet.  Do  not  extend  any  amounts  to  the  other  columns  until  you  have 
thus  drawn  off  into  your  Balance  Sheet  all  of  the  ledger  accounts  and  footed  the  columns,  to  ascertain 
whether  your  Ledger  is  in  balance.  If  your  trial  balance  proves — that  is,  if  the  first  two  columns  foot 
equally — your  next  step  will  be  to  extend  the  Eesources,  Liabilities,  Losses  and  Gains,  as  shown  by 
the  various  accounts  as  follows: 

CASH. 

Commence  with  Cash,  it  being  the  first  account  in  your  Balance  Sheet,  following  the  Proprietor's 
(Student's)  account.  '■"The  difference  between  the  Dr.  footing.  158?!. 91— the  cash  received — and  the 
Cr.  footing,  15530.49— the  cash  paid  out — is  341.42,  which  you  are  to  extend  to  the  Eesource  column 
in  your  Balance  Sheet,  because  it  is  the  cash  on  hand.     (See  33,  page  6. ) 

MERCHANDISE. 

™  First  enter,  in  the  Eesource  column,  the  Mdse.  on  hand — that  is  the  Inventory  as  shown  on 
page  31—14^0.50.  (See  32,  page  C.)  Make  the  entry  in  red  ink,  to  distinguish  it  from  the  resources 
shown  by  the  ledger  accounts.  Next  find  tlie  gain  on  Mdse.  account  by  either  of  the  following 
methods,  and  extend  into  the  Gain  column  of  your  Balance  Sheet  803.62.     (See  31,  page  6.) 

"'First  Method. 

Sales  of  Mdse.  (Cr.  footing), 9,377.62 

Inventory  (goods  on  hand,  page  31), —    1,420.50 


10,798.12 
Cost  of  Mdse.  (Dr.  footing), 9,994.50 


Gives  the  gain, 803. 62 


'"Secoxd  Method. 

Sales  of  Mdse 9,377.62 

Cost  of  Mdse. 9,994.50 

Inventory  "     1,420.50 


8,574.00 
Gives  the  gain, 803. 62 


H.  W.   STEVENS. 
"'The  Cr.  footing  of  his  account  is  1210,  and  the  debit  footing  775.     You  are  to  extend  to  the 
Liability  column  the  difference,  435,  because  it  is  the  balance  you  owe  him.     (See  33,  page  6.) 

FORD  &.  CO. 
'*>  The  debit  footing  of  their  account  is  200,  and,  there  being  no  credit,  extend  the  200  to  the 
Eesource  column,  it  being  the  amount  they  owe  you.     (See  32,  page  6. ) 


THEOKETKJAL    AND    PRACTICAL    BOOKKEEPING.  33 

EXPENSE. 

'"  First  enter,  in  the  Eesource  column,  the  Expense  Inventory,  300,  given  on  page  31.  (See  33, 
page  6.)  Enter  the  item  in  red  ink,  as  explained  for  Mdse.  Inventory.  Next  enter,  in  the  Loss 
column,  320.05,  the  loss  on  Expense  account  (sec  30,  page  6).  "*  This  you  will  find  by  deducting  the 
Expense  Inventory,  BOO,  from  the  Dr.  footing  of  Expense  account,  6^0.05,  because  the  Safe  and  Books, 
when  bought,  were  charged  to  Expense  account,  and  are  therefore  included  in  the  Dr.  footing,  6^0.05. 

JAS.  T.   HOAG. 

The  Dr.  footing  of  his  account  is  133.75,  and  the  Cr.  footing  25.  You  are  to  extend  to  the 
Resource  column  the  difference,  98.75,  because  it  is  the  balance  he  owes  you  (32,  page  G). 

WELLS,  JOHNSON  &.  CO. 

The  Cr.  footing  of  their  account  is  908.75,  and  the  Dr.  footing  200.  You  are  to  extend  to  the 
Liability  column  the  difference,  768.75,  it  being  the  balance  you  owe  them  (33,  page  G). 

BILLS  PAYABLE. 

'"The  difference  between  the  Cr.  footing,  2383.75  (the  notes  issued),  and  the  Dr.  footing,  2083.75 
(notes  redeemed),  is  300,  which  you  are  to  extend  to  the  Liability  column,  it  being  the  Bills  Payable 
outstanding  (33,  page  6). 

BILLS   RECEIVABLE. 
'"The  difference  between  the  Dr.  footing,  285480  (the  notes  received),  and  the  Cr.  footing, 
2724.50  (notes  disposed  of),  is  130.30,  which  you  are  to  extend  to  the  Resource  column,  it  being  the 
Bills  Receivable  on  hand  (33,  page  6). 

DAVID   BAILEY  and  W.  A.   BANCROFT. 
Same  instructions  and  explanations  for  these  accounts  as  given  above  for  H.  W.  Stevens'  account. 

INTEREST. 

"'  The  difference  between  the  Cr.  footing,  2.17  (the  interest  allowed  to  us),  and  the  Dr.  footing, 
1.93  (the  interest  allowed  by  us),  is  25c,  which  you  are  to  extend  to  the  Gain  column  (31,  page  6). 

DISCOUNT. 

'"The  difference  between  the  Dr.  footing,  16.64  (the  discount  allowed  by  us),  and  the  Cr.  footing, 
3.16  (the  discount  allowed  to  us),  is  13.48,  which  you  are  to  extend  to  the  Loss  column  (30,  page  6). 

SICKLES,  STOVER  &.  JACKSON. 
Same  instructions  and  explanations  as  given  above  for  Jas.  T.  Hoag's  account. 

REAL  ESTATE. 

"*  The  difference  between  the  Cr.  footing,  2300  (the  returns  from  sales),  and  the  Dr.  footing,  2000 
(the  cost),  is  300,  which  you  are  to  extend  to  the  Gain  column  (31,  page  0). 

CLARK,  SONS  &  BRADLEY. 
Same  instructions  and  explanations  as  given  above  for  Jas.  T.  Hoag's  account. 

COLLEGE    BANK. 

'"The  difference  between  the  Dr.  footing,  5200  (the  amount  deposited),  and  the  Cr.  footing, 
1341.07  (the  amount  withdrawn),  is  3958.93,  which  you  are  to  extend  to  the  Resource  column,  it  being 
the  balance  on  deposit  in  the  bank  (32,  page  6). 

You  may  now  foot  the  remaining  columns  of  your  Balance  Sheet,  viz:  the  Resource,  Liability, 
Loss  and  Gain  columns,  after  which  make  a  summary  of  the  results,  as  shown  in  the  form  of  Balance 
Sheet  on  page  34. 

'"When  the  losses  exceed  the  gains,  the  difference  is  called  the  "Net  Loss."  "'In  such  case  the 
Net  Loss  is  to  be  deducted  from  the  Net  Investment,  to  find  tlie  Present  Worth. 

'"  When  the  Liabilities  exceed  the  Resources,  the  Proprietor  is  said  to  be  "Insolvent." 


34 


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THEORETICAL    AND    PK4.0TICAI.    UOOK-KEKPING.  ■  35 

NoTK. — You  may  now  close  your  Ledger,  as  explained  below. 

First,  study  carefully  the  following  "General  Rules  for  Closing  the  Ledger,"  and  then  proceed  with  the  work  us 
instructed  under  "  Guide  for  Closing  the  Ledger  for  March,"  on  page  36. 

CLOSING    THE    LEDGER. 

'**It  is  customary  in  business,  once  ii  year  at  least,  to  cause  the  proprietor's  account  in  the  Ledger  to 
show  its  true  relation  to  the  business; -tluit  is,  the  i)roprietor"s  present  worth.  "'To  do  this,  it  is  neces- 
sary to  close  only  the  accounts  which  ghow  losses  and  gains;  because  in  these  accounts  are  entered  all 
the  transactions  which  make  the  jiroprietor  worth  more  or  less.  The  Net  Gain  or  Net  Loss  found  by 
closing  these  accounts  is  entered  in  (lie  proprietor's  account,  which  will  then  show  the  true  Present 
Worth. 

""The  remaining  accounts,  those  showing  resources  and  liabilities,  need  not  be  closed  for  this  pur- 
pose, as  they  simply  show  of  what  such  present  tvorth  consists,  and  closing  them  in  no  way  affects  the 
])roprietor's  account.  They  may  be  closed,  however,  to  mark  a  period  in  the  business,  or  for  the  pur- 
pose of  causing  each  account  to  exhibit  in  a  single  amount,  convenient  for  inspection,  its  exact  net 
debit  or  exact  net  credit,  as  the  case  may  be. 

"^Any  account  may  be  closed  at  iiiiy  time,  without  reference  to  a  general  closing  of  the  ledger. 
As,  for  instance — if  the  footings  become  very  largo  and  unwieldy,  the  account  may  be  closed  and  the 
balance  carried  forward ;  or,  in  the  case  of  a  jjersonal  account,  if  an  adjustment  is  had  and  the  correct 
balance  determined,  it  is  desirable  to  close  tlie  account  and  carry  forward  the  balance  agreed  upon  at 
that  time;  or,  if  the  space  assigned  an  account  becomes  filled,  the  account  may  be  closed  and  the  bal- 
ance transferred  to  a  new  account. 

"^  It  is  not  customary  iu  business,  even  at  a  general  closing  of  the  ledger,  to  close  all  of  the  per- 
sonal accounts.  The  ledger  of  a  large  business  house  not  infrequently  contains  personal  accounts  reach- 
ing into  the  thousands,  and  to  close  all  of  these  would  involve  a  great  amount  of  unnecessary  labor. 
Personal  accounts,  therefore,  are,  as  a  rule,  allowed  to  remain  open  until  closed  by  jiayment  in  the 
regular  course  of  business. 

For  the  purpose,  however,  of  giving  the  pupil  practice  in  the  work  of  closing  the  ledger,  all  of 
the  accounts  may  now  be  closed,  as  explained  below.  First,  read  carefully  the  General  Rules  for 
Closing  the  Ledger,  and  then  proceed  with  the  work,  as  instructed  on  page  36. 

GENERAL    RULES    FOR    CLOSING    THE    LEDGER. 

'•'Open  an  account  with  "Loss  and  Gain,"  at  the  top  of  the  first  blank  page  following  the  last 
account  in  your  Ledger,  if  you  have  not  already  opened  such  an  account. 

To  economize  time,  and  to  avoid  omissions,  it  is  desirable  to  close  the  accounts  in  tlie  order  in 
which  they  stand  in  the  Ledger,  omitting  the  Proprietor's  account  until  all  the  other  accounts  in  the 
Ledger  have  been  closed. 

ACCOUNTS  SHOWING   LOSSES  AND  GAINS  HAVING   INVENTORIES  CLOSED. 

'**  If  an  account  has  a  Resource  Inventory,  enter  the  amount  of  it  on  the  credit  side  of  the  account, 
in  red  ink,  using  for  explanation  "Inventory."  '*^If  an  account  has  a  Liability  Inventory,  enter  the 
amount  of  it  on  the  debit  side  of  the  account,  in  red  ink,  using  for  explanation  "Inventory."  "'Next 
enter,  on  the  smaller  side  of  the  account,  in  red  ink,  the  difference  between  the  sides,  using  for 
explanation  "  Loss  and  Gain."  "^Next  rule  up  the  account  and  enter  the  footings,  carrying  the  Inven- 
tory below  the  rulings,  on  the  opposite  side  of  the  account,  in  black  ink.  "*  Next  transfer  the  loss  and 
gain  amount  to  the  opposite  side  of  Loss  and  Gain  account,  in  black  ink,  using  for  explanation  the 
title  of  the  account  you  are  closing,  as  "Expense"  or  "Merchandise." 

ACCOUNTS  SHOWING  LOSSES  AND  GAINS  HAVING   NO  INVENTORIES  CLOSED. 

^^ Enter,  on  the  smaller  side,  in  red  ink,  "Loss  and  Gain,"  and  the  difference  between  the  sides  of 
the  account.  Rule  up  the  account,  enter  the  footings,  and  transfer  the  loss  and  gain  amount  to  the 
opposite  side  of  Loss  and  Gain  account,  in  black  ink,  using  for  explanation  the  title  of  the  account  you 
are  closing,  as  "Mdse.,"  "Real  Estate,"  etc. 

ACCOUNTS  SHOWING   RESOURCES  AND  LIABILITIES  CLOSED. 

^  Enter,  on  the  smaller  side  of  the  account,  in  red  ink,  "  Balance  "  and  the  difference  between  the 
sides.  Rule  and  foot  the  account,  and  carry  the  difference  below  the  rulings,  on  the  opposite  side,  in 
black  ink,  using  for  explanation  "Balance." 


36  THEORETICAL    AND    PRACTICAL    BOOK-KEEPING. 

'^'  LOSS  AND  GAIN  ACCOUNT  CLOSED. 
Enter  on  the  smaller  side  of  Loss  and  Gain  account,  in  red  ink,  the  proprietor's  name  and  the 
difference  between  the  sides,  which  difference  will  be  the  Net  Gain  or  Net  Loss.  Eule  and  foot  the 
account,  and  carry  the  difference  to  the  opposite  side  of  the  proprietor's  account,  in  black  ink,  using 
"Loss  and  Gain"  for  explanation.  In  case  of  a  partnership,  the  difference  should  be  divided  according 
to  the  terms  of  the  partnership  contract,  and  each  partner's  name  and  share  entered  separately  in  the 
Loss  and  Gain  account,  and  afterward  transferred  to  the  opposite  side  of  his  individual  account. 

"'THE  PROPRIETOR'S  ACCOUNT  CLOSED. 
Enter  on  the  smaller  side,  "Present  Worth"  and  the  difference  between  the  sides,  in  red  ink. 
Rule  and  foot  the  account,  and  bring  the  difference  below  the  rulings  on  the  credit  side  of  the  account, 
in  bliick  ink,  using  "  Present  Worth  "  for  explanation.  In  case  the  debit  side  of  the  proprietor's  account 
is  greater,  the  difference  will  be  entered  as  ''Insolvency."  In  case  of  a  i)artncrsliip,  each  partner's 
account  should  be  closed  as  described  above.     This  completes  the  closing  of  the  Ledger. 

Note. — After  you  have  carefully  read  the  "General  Rules  for  Closing  the  Ledger,"  given  above,  you  may  proceed 
with  the  work  of  closing  your  Ledger. 

To  assist  you  in  applying  the  foregoing  rules,  a  few  closed  accounts  are  s1k)wii  on  pages  38  and  39,  and  cj:plicit 
directions  are  given  below  for  every  step  to  be  taken,  and  you  should  follow  these  directioiis  very  carefully.  Take  each 
step  in  the  exact  order  indicated,  and  perform  the  work  nrecisely  as  directed. 

GUIDE   FOR  CLOSING  THE  LEDGER,   MARCH  31,  188-. 
First,  at  the  top  of  a  new  page  in  your  Ledger,  open  an  account  with  Loss  and  Gain.     Simply 
write  the  heading.     No  entry  is  to  be  made  in  the  account  for  the  present. 

Then  turn  to  the  first  account  in  your  Ledger  following  the  Proprietor's  (Student's)  account, 
which  is 

CASH. 

On  the  first  vacant  line  on  the  Cr.  side  of  this  account  say,  in  red  ink,  "Mar.  31,  Balance,  341.42," 
Next  rule  and  foot  the  account.     (See  Cash  account  closed,  on  page  38.) 

'"  In  ruling  an  account,  draw  the  red  line  directly  upon  the  blue  line.  In  the  double  ruling,  draw 
the  lines  as  close  as  possible  and  not  have  them  run  together.  Rule  on  the  same  line  on  both  sides  of 
the  account,  even  if  there  be  a  larger  number  of  entries  upon  one  side  than  upon  the  other.  (See 
ruling,  on  page  38. ) 

'"The  space  for  Cash  on  page  2  having  been  tilled,  open  another  Cash  account  at  the  top  of  a  new 
page  in  your  Ledger,  and  transfer  the  balance,  34L43,  forward  to  the  new  account,  as  follows:  On  the 
Dr.  side  of  the  new  Cash  account  say,  in  black  tnk,  "Apr.  1,  Balance,  341.42." 

'"  In  the  page  column  of  the  old  Cash  account,  enter  the  page  of  the  new  account,  to  show  where 
the  balance  was  transferred  to;  and  in  the  page  column  of  the  new  account,  enter  the  i^age  of  the  old 
account,  to  show  where  the  balance  Avas  transferred  from. 

"*  Red  ink  entries  in  the  Ledger  indicate  that  the  amounts  so  entered  are  to  be  transferred  to  some 

other  place. 

MERCHANDISE. 

On  the  Cr.  side  of  this  account  enter,  first,  the  inventory.  Say,  w  red  ink,  "  Mar.  31,  Inventory, 
1420.50."  Then,  on  the  Dr.  side,  enter  the  gain.  Say,  in  red  ink,  "  Mar.  31,  Loss  and  Gain,  803.62," 
and  enter  in  page  column  the  page  of  the  Loss  and  Gain  account.  Next  rule  and  foot  the  account  (see 
Mdse.  account  closed,  on  page  38).  Next  transfer  the  gam  to  the  Cr.  side  of  the  Loss  and  Gain  account. 
Say,  in  black  ink,  '•  Mar.  31,  Mdse.,  803.62,"  and  enter  page  of  Mdse.  account.  Next  transfer  the  inven- 
tory below  the  ruling  oi  the  Mdse.  account,  on  the  Dr.  side.     Say,  m  black  ink,  "Apr.  1,  Inventory, 

1420.50." 

H.  W.  STEVENS. 

On  Dr.  side  of  this  account  say,  in  red  ink,  "Mar.  31,  Balance,  435."     Next  rule  and  foot  the 

account.     Next  transfer  the  balance  below  the  ruling  on  the  Cr.  side.     Say,  in  black  tnk,  "Apr.  1, 

Balance,  435."     (See  Stevens'  account  closed,  on  page  38.) 

FORD  &  CO. 
Only  one  item   having  been  posted  to  this  account  since  it  was  balanced  and  ruled  up,  it  ig 
unnecessary  now  to  close  it,  the  balance,  200,  being  shown  as  it  stands. 

EXPENSE. 
On  the  Cr.  side  of  this  account  enter,  first,  the  inventory.     Say,  in  red  ink,  "  Mar.  31,  Inventory, 
300."     Next  enter,  on  the  same  side  of  the  account,  the  loss.     Say,  in  red  ink,  "Mar.  31,  Loss  and 
Gain,  320.05,"  and  enter  page  of  Loss  and  Gain  account.     Next  rule  and  foot  tlie  account.     Next 


•theoretical  and  practical  bookkeeping.  3f 

transfer  the  loss  to  the  Dr.  side  of  the  Loss  and  Gain  account.     Say,  in  Mack  ink,  "Mar.  31,  Expense, 

320.05,"  and  enter  page  of  Expense  account.     Next  transfer  the  inventory  below  the  ruling  of  the 

Expense  account,  on  the  Dr.  side.     Say,  in  black  ink,  "Apr.  1,  Inventory,  300."     (See  Expense  account 

closed,  on  page  39.) 

.  JAS.  T.   HOAG. 

On  Or.  side  of  this  account  say,  in  red  ink,  "Mar.  31,  Balance,  98.75."  Next  rule  and  foot  the 
account.  Next  transfer  the  balance  below  the  ruling,  on  the  Dr.  side.  Say,  in  black  ink,  "Apr.  1, 
Balance,  98.75."     (See  Hoag's  account  closed,  on  page  39.) 

WELLS,  JOHNSON  &  CO. 

Take  the  same  steps  in  closing  this  account  that  you  did  in  closing  H.  W.  Stevens'  account.  (See 
directions  for  closing  his  account,  on  page  36.) 

BILLS  PAYABLE. 
On  the  Dr.  side  of  this  account  say,  in  red  ink,  "Mar.  31,  Balance,  300."     Rule  and  foot  the 
account,  and  transfer  the  balance  below  the  ruling,  on  the  Cr.  side.     Say,  in  black  ink,  "Apr.  1,  Bal- 
ance, 300." 

BILLS  RECEIVABLE. 

On  the  Cr.  side  of  this  account  say,  in  red  ink,  "Mar.  31,  Balance,  130.30."     Rule  and  foot  the 

account,  and  then  transfer  the  balance  below  the  ruling  on  the  Dr.  side.     Say,  in  black  ink,  "Apr.  1, 

Balance,  130.30." 

DAVID    BAILEY  and  W.  A.   BANCROFT. 

Same  instructions  as  given  for  closing  H.  W.  Stevens'  account. 

INTEREST. 

On  Dr.  side  of  this  account  say,  in  red  ink,  "Mar.  31,  Loss  and  Gain,  25c,"  and  enter  page  of  Loss 

and  Gain  account.     Next  rule  and  foot  the  account.     Next  transfer  the  gain  to  the  Cr,  side  of  the  Loss 

and  Gain  account.     Say,  in  black  ink,  "Mar.  31,  Interest,  25c,"  and  enter  page  of  Interest  account 

(See  Interest  account  closed,  i)age  39.) 

DISCOUNT. 

On  Cr.  side  of  this  account  say,  in  red  ink,  "Mar.  31,  Loss  and  Gain,  13.48,"  and  enter  page  of 

Loss  and  Gain  account.     Rule  and  foot  the  account;  then  transfer  the  loss  to  the  Dr.  side  of  the  Loss 

and  Gain  account.     Say,  in  black  ink,  "Mar.  31,  Discount,  13.48."     (Remember  always  to  enter  the 

number  of  the  page,  when  amounts  are  transferred  to  or  from  some  other  page  in  the  Ledger. 

SICKLES,  STOVER  &  JACKSON. 

Same  instructions  as  given  for  closing  Jas.  T.  Hoag's  account.     (See  Hoag's  account  closed,  on 

page  39.) 

REAL  ESTATE. 

On  Dr.  side  say,  in  red  ink,  "Mar.  31,  Loss  and  Gain,  300."     Rule  and  foot  the  account,  and  then 

transfer  the  gain  to  the  Cr.  side  of  Loss  and  Gain  account.     Say,  in  black  ink,  "  Mar.  31,  Real  Estate, 

300." 

CLARK,   SONS  &  BRADLEY. 

Same  instructions  as  given  for  closing  Jas.  T.  Hoag's  account. 

COLLEGE  BANK. 
On  Cr.  side  say,  in  red  ink,  "  Mar.  31,  Balance,  3958.93."    Rule  and  foot  the  account,  and  transfer 
the  balance  below  the  ruling  on  the  Dr.  side.     Say,  in  black  ink,  "Apr.  1,  Balance,  3958.93." 

LOSS  AND  GAIN. 
On  Dr.  side  of  this  account  say,  in  red  ink,  "  Mar.  31,  Student,  770.34."    Rule  and  foot  the  account; 
then  transfer  the  Net  Gain  to  the  Cr.  side  of  Student's  account.    Say,  in  black  ink,  "  Mar.  31,  Loss  and 
Gain,  770.34."     (See  account  closed,  on  page  39.) 

STUDENT. 
On  Dr.  side  of  this  account  say,  in  red  ink,  "Mar.  31,  Present  Worth,  5170.34."     Rule  and  foot 
the  account;  then  transfer  the  difference  below  the  ruling,  on  the  Cr.  side.     Say,  in  black  ink,  "  A])r. 
1,  Present  Worth,  5170.34."     (See  account  closed,  on  page  38.) 

Your  Ledger  is  now  closed,  and  the  purpose  of  such  closing  has  been  accomplished,  viz :  '"  The 
Proprietor's  account  has  been  made  to  show  his  present  worth,  and  ""the  resources  and  liabilities  rep- 
resenting such  present  worth  are  exhibited  below  the  rulings  of  the  various  accounts  showing  them. 

Note. — This  subject  continued  on  page  40. 


38 


TIIEOIJKTICAL    AND    PRACTICAL    BOOK-KEEPING. 


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40  THEORETICAL    AND   PRACTICAL   BOOK-KEEPING. 

'"  In  closing  the  accounts,  the  equilibrium  of  the  Ledger  has  not  been  disturbed,  "°  as,  in  every 
instance  where  an  amount  was  entered  in  an  account,  either  upon  the  debit  or  credit  side  of  the 
Ledger,  the  same  amount  was  immediately  transferred  to  the  opposite  side  of  the  Ledger,  either  in 
some  other  account  or  below  the  rulings  of  the  same  account,  thus  keeping  the  Ledger  constantly  in 
balance.  A  trial  balance,  to  prove  that  your  Ledger  is  now  in  balance,  should  be  taken,  and  if  correct 
will  correspond  with  the  following: 

TRIAL  BALANCE  OF  LEDGER  BALANCES,  APRIL  1,  188-. 


"'RESOURCES  (Dr.    Balances). 

Cash, 341.42 

Mdse.  Inv 1,430.50 

Expense  Inv. 300.00 

Bills  Eeceivable, 130.30 

College  Bank, 3,958.93 

Personal  Accounts, 660.94 


Total  Resources, 6,813;09 


"'LIABILITIES   (Or.    Balances). 

Bills  Payable, _ 300.00 

Personal  Accounts, 1,341. 75 


Total  Liabilities, 1,641.75 

Student's  Present  Worth, 5,170.34 


6,812.09 


Note.— After  you  have  proved  your  Ledger  to  be  in  balance,  as  above  indicated,  you  will  be  ready  to  proceed  with 
the  month  of  April.  Before  doing  so,  however,  write  out  upon  foolscap  paper  answers  to  the  following  questions,  and 
present  them,  with  your  books,  to  the  teacher  for  approval. 

QUESTIONS   FOR   REVIEW. 

Page  5.— '-'What  is  Book-keeping?  *-*  Describe  the  use  of  the  Day  Book.  »-"The  Journal. 
'*-*'  The  Ledger.     *"  Give  the  three  kinds  of  accounts  used  in  Double  Entry. 

Page  6.—*^"  Give  the  rule  for  journalizing  Personal  accounts.  "-'« Property.  "''Allowances. 
"  Into  how  many  general  classes  are  the  three  kinds  of  accounts  divided?  ^^  When  does  an  account 
show  a  Loss?  "  When  a  Gain?  "  What  is  a  Resource?  ^  Liability?  ''"'  Give  the  rule  for  journalizing 
the  Proprietor's  account.     """  Cash.     ■""^*  Mdse. 

Page  7.—"-" Expense.     "«« Bills  Receivable.     "'^  Bills  Payable.     """ Interest,  Discount,  etc. 

Page  20.—*'  What  is  a  Trial  Balance?  *'-**  Why  does  it  not  prove  the  Ledger  absolutely  correct? 
"  When  may  an  account  be  omitted  from  the  Trial  Balance? 

Page  21. — "  What  is  the  first  thing  to  be  done  to  locate  an  error  in  the  Trial  Balance?  »*-"  The 
second?  ''What  eilect  would  the  omission  of  an  amount  in  posting  have  upon  the  Trial  Balance? 
""  What  if  posted  to  the  wrong  side  of  the  Ledger?  '"'  What  is  the  peculiarity  of  an  error  caused  by 
figures  having  been  transposed?  '"When  all  of  the  short  tests  for  finding  the  error  fail,  Avhat  is  it 
necessary  to  do  as  a  final  resort?  """""  Why  is  it  necessary  to  indicate  by  a  check  mark  in  the  Ledger 
that  each  item  has  been  examined? 

Page  27. — "°""'  Give  the  rule  for  journalizing  Bank  account.  '"  How  are  the  checks  of  other 
parties  in  your  hands  treated? 

Page  31.—'"-'"  What  is  an  Inventory?  '"-'"  How  found  usually,  and  at  what  price  are  the  goods 
estimated? 

Page  32. — "°  What  are  exhibited  in  the  Balance  Sheet?  "'In  what  column  are  the  Inventories 
entered?    "'-'"  How  is  the  gain  on  Mdse.  found? 

Page  33. — "*  How  is  the  loss  on  Expense  found? 

Page  34. — What  does  the  difference  between  the  footings  of  the  columns  of  Resources  and  Liabili- 
ties show?  (See  Summary,  also  137,  page  33.)  What  does  tlie  difference  in  the  footings  of  the 
columns  of  Losses  and  Gains  show?  (See  Summary,  also  135,  page  33.)  How  is  the  Present  Worth 
of  the  proprietor  ascertained?     (See  Summary,  also  136,  page  33.) 

Page  35. — '^'^  How  often  and  in  what  manner  is  the  proprietor's  account  in  the  Ledger  caused  to 
exhibit  its  true  relation  to  the  business  ?  '*°  Wliy  is  it  not  necessary,  for  this  purpose,  to  close  the 
accounts  showing  resources  and  liabilities?  '*'  State  some  of  the  circumstances  under  which  an  account 
may  be  closed  at  any  time.  '"Why  is  it  not  customary  in  business  to  close  the  personal  accounts, 
even  at  a  general  closing  of  the  Ledger  ?  '"  In  closing  the  Ledger,  what  new  account  is  it,  sometimes, 
necessary  to  open  ?  '""'**  How  are  accounts  showing  losses  and  gains  having  inventories,  closed  ? 
'*'How  are  accounts  showing  losses  and  gains  having  no  inventories,  closed?  '"How  are  accounts, 
showing  resources  and  liabilities,  closed  ? 

Page  36. — ^^  How  is  the  Loss  and  Gain  account  closed  ?  "*'  How  is  the  Proprietor's  account  closed  ? 
How  are  partners'  accounts  closed  ? 


THEORETtCAL    AND    PRACTICAL    BOOKKEEPmO. 


41 


Note.— Before  proceeding  with  tlie  month  of  April,  study  carefully  the  following  explanations  and  examples  on 
pages  41,  42,  43  and  44. 

DRAFTS. 

'"  A  Draft  is  the  written  order  of  one  party  upon  a  second,  requesting  the  payment  of  a  sum  of 
'money  to  a  third.  '"The  party  drawing  the  draft  is  the  "Drawer."  '"The  party  upon  whom  the 
draft  is  drawn  is  the  "  Drawee."     "°  The  party  to  whom  the  draft  is  made  payable  is  the  "  Payee." 

"'  The  draft  is  employed,  usually,  as  a  medium  of  exchange  between  distant  places,  obviating  the 
expense  and  risk  of  sending  money. 

"*  Drafts  may  be  drawn  with  reference  to  time  in  three  different  ways,  viz:  "*  At  sight,  ""  a  speci- 
fied number  of  days  after  sight,  or '"  a  specified  number  of  days  after  date.  '"Drafts  drawn  "at 
sight "  are  presented  to  the  Drawee  for  payment.     '"  Time  drafts  are  presented  for  "acceptance." 

'"  Acceptance,  when  applied  to  drafts,  signifies  the  written  acknowledgement  of  the  Drawee,  that 
he  agrees  to  the  conditions  named  in  the  draft.  '"  This  he  does  by  writing  across  the  face  of  the  draft, 
usually  in  red  ink,  to  distinguish  the  acceptance  from  the  other  writing,  the  word  Accepted,  the  date, 
where  payable,  and  his  signature.  '"  It  is  not  necessary  to  date  the  acceptance  when  the  draft  is 
drawn  a  given  number  of  days  after  date. 


Baltimore,  Md.,  ^^^jj  \q.b,^ 

C^^C^  ^Zi^'^^^y i::?Ct;^-2^^^cd--C'i:i^^       PAY  TO 


OR    ORDER, 

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.AND  CHARGE   TO   ACCOUNT  OK 


CA.4A^ 


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In  the  above  draft,  the  firm  of  Perry  &  Jackson  is  Drawer,  J.  V.  Wentworth  is  Drawee,  and  the 
firm  of  Willitson,  Burgess  &  Hait,  is  Payee.  The  parties  sustain  the  following  relations  to  each  other: 
Perry  &  Jackson  owe  Willitson,  Burgess  and  Hait,  and  Wentworth  owes  Perry  &  Jackson.  Perry  & 
Jackson,  who  reside  in  Baltimore,  draw  the  draft  and  remit  it  to  Willitson,  Burgess  &  Hait,  who 
reside  in  Albany.  Immediately  upon  its  receipt,  they  present  it  to  Wentworth,  who  also  resides  in 
Albany,  for  acceptance.  If  accepted,  Willitson,  Burgess  &  Hait  will  hold  Wentworth's  written 
promise  to  pay,  which,  when  paid,  will  cancel  the  indebtedness  of  both  Perry  &  Jackson  and  Wentworth. 

'"  The  Payee  has  no  legal  claim  against  the  Drawee  until  after  the  draft  has  been  accepted. 

'"  There  need  necessarily  be  but  two  parties  to  a  draft.  "'  The  Drawer  may  make  tlie  draft  pay- 
able to  himself,  in  which  case  he  either  sends  it  to  the  Drawee  to  be  accepted  and  returned,  or,  if  his 
(the  Drawer's)  credit  be  unquestioned,  he  may  dispose  of  it  before  acceptance. 

""What  are  termed  "Bank  Drafts"  constitute  a  large  proportion  of  the  business  transacted 
through  this  medium  of  exchange.  '"  All  banks  keep  money  deposited  with  one  or  more  of  the 
banks  located  at  some  one  of  the  commercial  centers  of  the  country,  as  New  York,  Boston,  Chicago, 
San  Francisco,  New  Orleans,  etc.,  against  which  they  draw  drafts  to  sell  to  their  customers  for  remit- 
tance to  creditors,  these  drafts  passing  everywhere  current  as  cash. 

SPECIAL  INSTRUCTIONS  FOR  JOURNALIZING   DRAFTS. 
DRAWER'S  ENTRIES. 


'"  When  he  draws  a  draft  and  remits  it  to  the  Payee,  to  apply 
on  account,  he  makes 

'"  When  he  draws  a  draft  and  disposes  of  it,  less  discount, 
receiving  cash  for  proceeds. 


Payee,  Dr. 

Cash, 
Discount, 


To  Drawee, 
To  Drawee, 


4S 


tHEORETICAL    AND    PRACTICAL    BOOK-KEEPINOf. 


DRAWEE'S  ENTRIES. 
'**  When  lie  accepts  a  draft  drawn  on  him  on  account. 

'"  When  he  pays  a  sight  draft  drawn  on  him  in  cash. 

'*'  When  he  prepays  a  time  draft,  in  cash,  less  discount,  instead 
of  accepting  it. 

'"  When  he  pays  his  acceptance  at  maturity,  in  cash. 

PAYEE'S  ENTRIES. 

'"  When  he  receives  a  time  draft  from  Drawer,  to  apply  on  I  Bills  Receivable, 
account,  and  has  had  it  accepted.  |  To  Drawer 


Drawer, 
Drawer, 

To  Bills  Payable, 
To  Cash, 

Drawer, 

To  Discount, 
"  Cash, 

Bills  Payable, 

To  Cash, 

'*'  When  the  Drawee  prepays  the  draft  in  cash,  less  discount, 
instead  of  accepting  it. 

"°  When  he  buys  the  draft  of  the  Drawer,  instead  of  receiving 
it  on  account,  the  Drawer  allowing  him  the  discount. 


Cash, 
Discount, 

To  Drawer, 

Bills  Receivable, 

To  Cash, 
"  Discount, 


GENERAL   RULE   FOR  JOURNALIZING    DRAFTS  WHEN   DRAWN  ON  ACCOUNT. 

"'  Debit  the  person  whcr  draws  the  draft  on  you.      ™  Credit  the  person  on  whom  you  draw  a  draft. 

Note. — The  following  examples  and  explanations  are  given  to  illustrate  the  application  of  the  principles  embodied 
in  the  foregoing  special  and  general  rules  regarding  drafts,  and  to  assist  you  in  the  work  of  journalizing  the  transactions 
in  which  drafts  are  involved  in  the  following  sets. 

EXAMPLES  ILLUSTRATING  JOURNAL  ENTRIES  OF  ALL   PARTIES  TO   DRAFTS. 

UNDER  DIFFERENT  CONDITIONS. 

EXAMPLE    No.  34. 


1  1  1 

1500.00.                                                                  Detroit,  Mich.,  Apr.  1,  188-. 

fT"'  3  -^  =« 

Thirty  days  after  date,  for  value  received,  pay  to  Smith  &  Ogden,  or  order. 

[For  form  of  ac 

see  page 

Accepted,  paya 

chants'  Bai 

Frost 

Five  Hundred  Dollars,  and  charge  the  same  to  my  account. 

To  Frost  &  Selben,                                                  R.  H.  DINGMAN. 
Philadelphia,  Pa. 

Due  May  4,  188-. 

Dingman's  entry,  if   he   sends  above  draft  to 
Smith  &  Ogden  to  apply  on  account. 

Smith  &  Ogden, 

To  Frost  &  Selden, 

500 

500 

Frost  &  Selden's  entry  when  they  accept  the 
draft. 

R.  H.  Dingman, 

To  Bills  Pay., 

500 

500 

Smith  &  Ogden's  entry  at  time  of  receiving  the 
draft  from  Dingman  on  account. 

Bills  Rec'v, 

To  R.  n.  Dingman, 

500 

500 

I'lIEOKETiCAL    AND    iPKACtlCAL    BOOK  KEKPlNU. 

EXAMPLE    No.   35. 


43 


$200.00. 

ElCHMOND, 

Va.,  Apr. 

6,  188-. 

At  siglitj 

pay  to  the  order 

of  E. 

T. 

Crouch,  Two 

Hundred 

Dollars, 

for 

yalue  received, 

and  charge  same  to 

the 

account  of 

To  Eaton, 

Clark  &  Co., 

New  York. 

GOSS  & 

FARNSWORTH. 

Goss  &  Farnsworth's  entry  at  time  of  drawing 
the  draft  and  remitting  it  to  Crouch,  on  account. 

E.  T.  Crouch, 

To  Eaton,  Clark  &  Co. 

200 

00 

200 

00 

E.  T.  Crouch's  entry  at  time  of  receiving  draft 
of  Goss  &  Farnsworth,  on  account. 

Cash, 

To  Goss  &  Farnsworth, 

200 

00 

200 

00 

Eaton,  Clark  &  Co.'s  entry  at  time  of  paying 
the  draft,  in  cash. 

Goss  &  Farnsworth, 

To  Cash, 

200 

00 

200 

00 

EXAMPLE    No.   36. 


$600.00. 

Burlington 

,  Iowa,  Apr.  10, 

188-. 

At  ninety  days' 

sight,  pay  to  the 

order 

of  A. 

M.  Gordon,  Six 

Hundred 

Dollars, 

value  received. 

and  charge  to  ac 

count 

of 

BIGELOW  & 

CO. 

To 

Hatch,  Mills  &  Pardee, 

Chicago,  111. 

Bigelow  &  Co.'s  entry  at  time  of  drawing  the 
draft  and  sending  it  to  A.  M.  Gordon,  on  account.  : 

A.  M.  Gordon, 

To  Hatch,  Mills  &  Pardee, 

600 

00 

600 

00 

A.  M.  Gordon's  entry  if,  when  he  presents  the 
draft.  Hatch,  Mills  &  Pardee  prepay  it  in  cash, 
less  discount  93  days,  instead  of  accepting  it. 

Cash, 
Discount, 

To  Bigelow  &  Co., 

590 
9 

83 

17 

600 

00 

Hatch,  Mills  &  Pardee's  entry  at  time  of  pre- 
paying the  draft  as  above  stated. 

Bigelow  &  Co., 

To  Cash, 
"  Discount, 

600 

00 

590 
9 

83 
17 

EXAMPLE    No.  37. 


DAT   BOOK   RECORD. 


ITEMS.  TOTAL. 


JOURNAL   ENTRY    FOR   SAME. 

DR. 


Accepted  J.  T.  Brown's 
draft  on  us,  at  10  days' 
sight,favor  of  D.  Woods, 
to  apply  on  account. 


400 


J.  T.  Brown, 

To  Bills  Payable, 


400 

400 

We  owe  Brown  the  above  amount.  He  therefore  has  the  right  to  order  us  to  pay  it,  either  to 
himself  or  to  another.  In  accepting  the  draft— that  is,  in  agreeing  to  its  conditions  in  writing — we 
issue  our  written  promise  to  pay,  and  must  therefore  credit  Bills  Payable.  We  debit  Brown  because 
we  get  out  of  his  debt  by  agreeing  in  writing  to  pay  this  amount  to  another  party. 


44 


tHEORETiCAt   AND    PRACTICAL    BOOK-KEEPtNO. 


EXAMPLE    No.  38. 


DAY   BOOK    RECORD. 


JOURNAL   ENTRY    FOR   SAME. 


Drew  a  draft  at  60  days 
after  date,  on  Marsh 
Bro's,  Kansas  City,  and 
discounted  it  at  City 
Bank, 
Discount  for  63  days, 
Eec'd  cash  for  proceeds. 


1 

98 

04 
96 

100 

Discount, 
Cash, 


To  Marsh  Bro's, 


1 

04 

98 

96 

100 

Marsh  Bro's  owe  us  the  above  amount,  due  in  60  days.  Having  immediate  use  for  the  money,  we 
draw  a  draft  upon  them  and  get  it  discounted  at  City  Bank.  By  paying  the  above  draft.  Marsh  Bro's 
will  get  out  of  our  debt.  We  therefore  give  them  credit.  Cash  and  Discount  being  debited.  Should 
Marsh  Bro's  fail  to  honor  the  draft,  however,  we  should  be  obliged  to  refund  the  money  to  the  bank, 
in  which  case  Marsh  Bro's  would  be  debited  back,  thus  placing  their  accouut  as  it  was  before  the  draft 
was  drawn. 

EXAMPLE    No.  39. 

DAY   BOOK    RECORD.  JOURNAL   ENTRY   FOR   SAME. 


Prepaid  our  acceptance  in 

favor  of  Wm.  Heath, 
Discount  off,  40  days. 
Paid  balance  in  cash. 


250 

1 
1 

1 

64 

1 

248 

36 

1 

Bills  Payable, 


To  Discount, 
"  Cash, 


250 


1 

248 


64 
36 


At  the  time  of  accepting  the  al)ove  draft,  we  issued  our  written  promise  to  pay,  and  therefore  Bills 
Payable  must  have  been  credited.  We  now  debit  Bills  Payable,  because  our  written  promise  to  pay 
has  been  redeemed. 

EXAMPLE    No.  40. 

DAY   BOOK    RECORD.  JOURNAL   ENTRY    FOR   SAME. 


Paid  Geo.  D.  Baker's  draft 
on  us,  at  60  days'  sigiit, 
less  discount. 

Face  of  draft. 

Discount  off,  63  days, 

Paid  balance  by  check  on 
City  Bank, 


Geo.  D.  Baker, 

300 

3 

11 

300 

To  Discount, 
"  City  Bank, 

311 

296  89 

296 

89 

We  pay  the  above  draft  drawn  upon  us  by  Baker  when  it  is  presented,  instead  of  accepting  it,  and 
therefore  credit  Discount  and  City  Bank  instead  of  crediting  Bills  Payable,  as  in  Example  No.  37 

above. 

EXAMPLE    No.  41. 

DAY    BOOK    RECORD.  JOURNAL   ENTRY   FOR   SAME. 


Had  C.  T.  Meldrum's  ac- 
ceptance discounted  at 
City  Bank, 
Discount  off,  48  days. 
Proceeds    placed    to    our 
credit. 


175 

1 

38 

173 

62 

City  Bank, 
Discount, 


To  Bills  Receivable, 


173 
1 


175 


When-  the  above  draft  was  received  by  us  and  accepted  by  Meldrum,  we  must  have  debited  Bills 
Receivable,  because  the  written  promise  to  pay  of  another  person  had  come  into  our  possession.  We 
therefore  credit  Bills  Receivable  now,  because  such  written  promise  to  pay  is  disposed  of. 

NoTB. — After  you  have  carefully  read  the  foregoing  rules  and  explanations,  you  may  proceed  with  the  month  of 
April.  You  are  to  admit  Mr.  D.  W.  Leonard  as  an  equal  partner  in  the  business,  he  to  invest  an  amount  of  cash  equal 
to  your  present  worth,  as  shown  by  your  Balance  Sheet  of  March  31st. 

In  a  business  conducted  by  a  partnership,  an  account  is  usually  opened  in  the  Ledger  with  each  partner,  in  which 
he  is  credited  with  his  share  of  the  investment  and  also  his  share  of  the  gains,  or  is  debited  with  his  share  of  the  losses. 

A  "  Stock"  account  is  sometimes  opened  in  a  partnership  business,  instead  of  an  account  with  each  partner,  which 
is  credited  with  the  combined  investment  of  the  partners,  and  at  stated  periods  is  credited  with  the  entire  net  gain  of 
the  business,  or  debited  with  the  net  loss.  In  such  case  a  "  Stock  Ledger"  is  kept  by  the  partners,  upon  wiiich  each 
has  an  account  showing  his  interest  in  the  business.  In  the  month  of  April  tlie  first  plan  will  )«?  adopted.  The  memo- 
randa of  transaction.^  for  the  month  of  April  l)egin  <m  page  46. 


THEORETICAL   AND   PRACTICAL   BOOK-KEEPING. 


45 


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Note. — The  Day  Book  and  Journal  will  hereafter  be  combined ;  the  history  of  the  transactions  being  written  in 
connection  -with  the  journal  entry.  In  the  form  shown  above^  both  debits  and  credits  are  entered  at  the  left  side  of  the 
page,  the  right  side  being  reserved  for  the  explanations.  The  debits  are  to  be  entered  first.  Tlie  credits  are  distin- 
guished by  having  the  sign  "  To  "  placed  before  them.  The  explanations  are  to  be  written  about  one-third  smaller  than 
the  journal  entries.  If,  however,  the  teacher  prefer,  the  Day  Book  and  Journal  may  be  continued  as  separate  books  to  the 
montli  of  July, 'page  58. 


46 


THEORETICAL    AND    PRACTICAL   BOOK-KEEPING. 


80,  pa.  7. 
75,  pa.  7. 
110,  p.  27. 


Ex.  37,  p. 
13. 


Ex.  38,  p. 
44. 


Ex.  37,  p. 
43. 


185,  p.  43. 
Ul,  p.  27. 


Ex.  37,  p. 
43. 


67,  pa.  7. 
76,  pa,  7. 
lU,  p.  27. 


182,  p.  41. 


187,  p.  42. 


APRIL     1,    188- 

D.  W.  Leouard  has  this  day  been  admitted  as  an  equal  jjartner,  the  firm  name  to  be  Student 
&  Leonard. 

D.  W.  Leonard  invests  Cash  equal  to  Student's  jiresent  worth. 

a 

Bo't  of  David  Bailey,  New  York,  on  "fc,  40  bbls.  Sugar,  10000  lbs.,  @  llic. 

2 
Received  of  Ford  &  Co.  their  note  at  25  days  on  ofe,  100.00. 

3.  ^ 

Sold  F.  W.  Warren,  Avon,  N.  Y.,  10  bbls.  Sugar,  2500,  @  13c.     Received  in  payment  Cash, 
50.00.     His  note  at  15  days,  with  interest,  200.00.     Balance  on  "/c. 

it 
Deposited  Cash  in  College  Bank,  2500.00. 

4. 
Gave  Wells,  Johnson  &  Co.  our  note  of  20  days,  with  interest,  on  °/c,  400.00. 

5. 
Paid  H.  W.  Stevens,  cash  on  account,  100.00. 

(< 

Had  Ford  &  Co.'s  note  of  2d  inst.  discounted  at  College  Bank.     Face  of  note  100.00;  discount, 
25  days,  41c.;  proceeds  credited  to  our  account,  99.59. 

6. 
Sold  Moore  &  Collins,  Buffalo,  50  bbls.  Flour,  @  8.25.     Rec'd  in  payment,  their  note  at  30 
days  for  150.00;  balance  on  cfe. 

7. 
Accepted  David  Bailey's  draft  on  us,  at  10  days'  sight,  favor  E.  R.  Andrews,  payable  at  College 
Bank,  to  apply  on  %  500.00. 

8. 
Drew  a  draft  at  30  days  from  date,  on  Ford  &  Co.,  Baltimore,  and  had  it  discounted  at  CJollege 
Bank.     Face  of  draft,  100.00;  discount,  33  days,  54c.;  rec'd  cash,  99.46. 

it 
Accepted  W.  A.  Bancroft's  (Boston)  draft  on  us,  favor  of  himself,  at  3  days'  sight,  to  balance 
a/e,  38.00. 

9. 
Bo't  of  W.  A.  Bancroft,  Boston,  20  chests  Y.  H.  Tea,  1200  lbs.,  @  65c.     Gave  him  in  pfiyment, 
check  on  College  Bank,  500.00.     Balance  on  "5fc. 

10. 
Paid  Wells,  Johnson  &  Co.'s  sight  draft  on  us,  favor  A.  S.  Briggs,  by  check  on  College  Bank, 
100.00. 


Deposited  cash  in  College  Bank,  1500.00. 


11. 


Accepted  H.  W.  Stevens'  (Detroit)  draft  on  us,  at  30  days  from  Apr.  8th,  favor  Howe  &  Orton, 

for  200.00. 

12. 

Sold  Clark,  Sons  &  Bradley,  New  York,  on  o/c,  10  chests  Y.  H.  Tea,  600  lbs.,  @  75c.;  6  mats 

Java  Coffee,  400  lbs.,  @  32c. 

13. 
Prepaid  note  given  Wells,  J.  &  Co.,  Mar.  6.     Face  of  note,  300.00;  discount  off  to  maturity, 

25  days,  1.23.     Paid  balance  by  check  on  College  Bank. 

14. 

Drew  a  draft  on  Clark,  Sons  &  Bradley,  New  York,  at  sight,  and  remitted  it  to  David  Bailey, 

on  a/c,  300.00. 

it 

Paid  our  acceptance  of  8th  inst.,  favor. of  W.  A.  Bancroft,  due  to-day,  in  cash,  38.00. 

15. 
Rec'd  cash  of  Sickles,  Stover  &  Jackson,  on  "Jfc,  50.00. 


THKOKETK'AL    AND    PRACTICAL    BOOK-KEEPING. 


47 


188,  p.  42. 


Ex.  39,  p. 
14. 


187,  p.  42. 
Ill,  p.  37. 


38,  pa.  H. 
60,  pa.  7. 

76,  pa.  7. 


182,  p.  41. 
75,  p.  27. 


89,  pa  6. 
60,  pa.  7. 


47,  pa.  6. 
68,  pa.  7. 
24,  pu.  U. 


69,  pa.  7. 
24,  pa.  6. 


39,  pa.  6. 

75,  pa.  7. 
60,  pa.  7. 


16. 

Kee'd  from  Moure  &  Collins,  Bullalo,  to  apply  on  "/c,  their  draft,  at  3  days'  sight,  on  L.  M. 
Horton,  which  Horton  accepted,  300.00. 

17. 
Rec'd  cash  of  Moore  &  Oollins  for  tiieir  note  of  Mar.  25th,  duo  to-day,  130.30. 

18. 
Prepaid  our  acceptance  of  11th  inst.,  favor  Howe  &  Orton.     Face  of  acceptance,  300.00;  dis- 
count to  maturity,  23  days.     Paid  balance  in  casli.      (See  Note  No.  1,  below.) 

19. 
Sold  K.  li.  Barnard,  CJity,  on  a/c,  50  l)bls.  Salt,  @  2.55. 

20. 
Our  acceptance  of  7th  inst.,  favor  Andrews,  due  to-day,  at  College  Bank,  has  been  charged  by 
tlie  Bank  to  our  "jc.     (See  Note  No.  2,  below. ) ' 

21. 
F.  W.  Warren  paid  his  note  of  3d  inst.,  and  interest,  due  to-day,  in  cash.     Face  of  note, 
200.00;  interest  to  date,  18  days. 

Drew  a  draft  at  60  days  from  date,  on  Sickles,  Stover  &  Jackson,  Detroit,  and  remitted  it  to 
H.  W.  Stevens,  on  "{c,  less  discount.  Face  of  draft,  100.00;  discount  off,  63  days. 
Charged  the  balance  to  his  '^c. 

22. 

Eec'd  cash  of  L.  M.  Horton,  for  his  acceptance  of  IGth  inst.,  due  to-day. 

<< 

Paid  Rent  of  Store  in  cash,  25.00. 

23. 
Rec'd  of  R.  H.  Barnard,  his  dote  at  20  days,  with  interest,  to  apply  on  "jc,  50.00. 

24 
Student  drew  cash  from  the  business,  for  his  private  use,  50.00. 

25. 
Drew  a  draft  on  F.  W.  Warren,  Avon,  at  30  days'  sight,  favor  of  ourselves,  to  balance  'Yc,  and 
sent  draft  to  him  to  be  accepted  and  returned.     Amount  of  draft,  75.00.     (This  is  simply 
a  memorandum;  no  journal  entry  is  required  until  draft  is  returned.) 

26. 
Bo't  of  Beekman  &  Ordway,  Phil'a,  20  hhds.  N.  O.  Molasses,  1260  gals.,  @  50c.     Accepted 
their  draft  on  us,  favor  themselves,  at  60  days'  sight,  315.00.     Balance  on  "je. 


Deposited  in  College  Bank,  1000.00. 


27. 


F.  W.  Warren  returned  draft  accepted.     Acceptance  dated  Apr.  26.     (See  Apr.  25,  above. ) 

Paid  our  note  of  4th  inst.,  favor  Wells,  Johnson  &  Co.,  and  interest,  due  to-day,  by  check  on 
College  Bank.     Face  of  note,  400.00;  interest  to  date,  23  days. 

28. 
Paid  W.  A.  Bancroft,  on  "jc,  by  check  on  College  Bank,  175.00. 

29. 
Paid  Bookkeeper's  Salary  in  cash,  75.00. 

30 

A  fire  in  our  store  last  night  damaged  our  entire  stock  of  Tea.     No  insurance.     Sold  the  entire 
lot  to-day  at  auction  for  cash;  1300  lbs.,  @  25c. 

Discounted  F.  W.  Warren's  acceptance,  received  37th  inst.,  at  College  Bank.     Face  of  accept- 
ance, 75.00;  discount  off,  29  days.     Rec'd  cash  for  the  proceeds. 

Note  No.  1. — Comijute  Interest  and  Discount  at  6  per  cent.,  on  a  basis  of  36.5  day.s  for  a  year. 
Note  No.  2. — Since  in  the  acceptance  of  this  draft  we  made  it  payable  at  College  Bank,  the  bunk  charges 
it  to  our  account  the  same  as  a  check. 


48 


THEOKKTICAL    AND    PRACTICAL    BOOKKEEPING. 


INVENTORIES,  APRIL  30,   188_ 

Note. — Copy  the  Inventory  in  the  form  shown  on  page  31. 


MDSE. 


EXPENSE. 


(  50  bbls.  Flour,  @  7.00;  30  bbLs.  Sugar,  7500  lbs.,  @  llic; 
\  400  lbs.  J.  Coffee,  @  28c. ;  1260  gals.  Molasses,  @  50c. 

Office  Safe,  valued  10  ^  below  cost.     250.00— 25.00=2;;5.00. 
"     Books,    "     20  k      '•         "         50.00—10.00=  40.00. 


-  =  Total,    1926  38 
i  =  Total,      365  00 


XoTE. — Before  proceeding  to  post,  draw  up,  on  cup  paper,  and  present  to  tlie  teacher  tor  approval,  the  drafts  referred 
to  in  transiictions  of  April  11th,  14th,  16th  and  27th.  See  forms  of  drafts,  on  pages  41,  42  and  4S.  In  posting,  if  an  account 
gets  crowded  for  space,  transfer  it  to  a  new  page.  See  instructions  (154,  page  36)  for  transferring  an  account.  Open 
Leonard's  account  in  tlie  middle  of  page  1  in  your  Ledger.  Give  personal  accounts  hereafter  one-fourtli  of  a  page  space; 
other  accoimts  one-half  of  a  page. 

On  May  1st  Alex.  Mitchell  is  to  be  admitted  as  a  partner;  yon  may  therefore  make  out  Balance 
Sheet  similar  to  that  for  March.  In  the  form  of  Balance' Sheet  given  below,  only  a  few  of  tlie  amounts 
are  extended,  the  student  being  required  to  complete  the  extensions,  foot  the  columns  and  prove  his 
results,  as  indicated  in  the  Summary  below.  (Refer  to  "  Guide  for  making  Balance  Sheet  for  March,"' 
on  jiage  32,  and  also  to  "Trial  Balance  and  Balance  Sheet  for  March,"  on  page  34.)  Remember  that 
you  are  to  foot  the  accounts  in  your  Ledger  in  pencil,  and  carry  the  footings  to  the  first  two  columns  of 
your  Balance  Sheet,  and  foot  those  columns,  to  ascertain  whether  your  Ledger  is  in  balance,  before  you 
proceed  to  extend  the  Resources,  Liabilities,  Losses  and  Gains  to  the  other  columns.  Should  the  first 
two  columns  not  foot  equally — in  other  words,  should  your  trial  balance  not  prove — see  note  No.  2, 
2iage  26. 

BALANCE  SHEET,  APRIL  30,  188-. 


Student, 

D.  W.  Leonard, 

Mdse. 

H.  AV.  Stevens, 

Expense, 

Jas.  T.  Hoag, 

Moore  &  Collins, 

Wells,  J.  &  Co. 

Bills  Payable, 

Bills  Receivable, 

David  Bailey, 

W.  A.  Bancroft, 

Interest, 

Discount, 

Sickles,  S.  &  J. 

Clark,  Sons  &  B. 

College  Bank, 

Cash, 

R.  H.  Barnard, 

Beekman  &  0. 


DB.  rOOTING.     CK.  FOOTING.       RESOURCES.       LIABILITIES. 


50 

3943 
398 
400 


905 


96 


30 


51 


5170 

5170 

1743 

435 


705 


30 


59 


200 


36 


04 


92 


SUMMARY. 


Total  Losses,       -        -        -        - 
'•     Gains,    -        -        -        - 

409 

90 

Student's  Net  Credit, 
"         ^  Net  Loss,    - 

Present  Worth,  - 

D.  W.  Leonard's  Net  Credit, 
'■■               1  Net  Loss, 

"                Present  Worth, 

Present  Wortli  of  Firm,     - 

5120 
204 

34 
95 

4915 
4965 

Net  Loss, 

Total  Resources,     -        -        - 
'•     Liabilities,          -        .         - 

409 

11333 
1452 

90 

07 
29 

5170 
204 

34 
95 

39 

39 

Present  Worth  of  Firm, 

9880 

78 

9880 

78 

1 

;XoTE  — Only  the  accounts  showing  losses  and  gains  and  th<?  partners'  accounts  are  to  be  closed.     See  instructions  on 
next  page. 


THKORE-nCAL    AND    PRACTICAL    BOOK-KEEPING. 


49 


If  tho  accounts  in  yonr  Ledger  are  correct,  tlie  difference  between  the  Dr.  and  Cr.  footings  of  tliose 
accounts  not  extended  in  the  iibove  Biilanee  Sheet  will  be  as  follows:  Cash,  1129.51;  Wells,  J.  &  Co., 
268.75;  Bills  Payable,  315;  Moore  &  C,  02.50;  Bailey,  412.50;  Discount,  3Cc. ;  Bank,  7083.24;  Bancroft, 
105;  Clark,  S.  &  B.,  470.19;  Sickles,  S.  &  J.,  20;  Barnard,  77.50;  Beekman  &  0.,  315;  Hoag,  98.75. 

CLOSE  ONLY  THE  ACCOUNTS  SHOWING  LOSSES  AND  GAINS. 
After  completing  your  Balance  Sheet  for  April,  proceed  to  close  in  the  Ledger  those  accounts  only 
which  exhibit  losses  and  gains,  together  with  the  Loss  and  Gain  and  Partners'  accounts,  in  accordance 
with  the  General  Rules  for  Closing  the  Ledger,  on  pages  35  and  36.  For  assistance  in  closing  Mdse., 
see  145,  page  35;  Expense,  145,  page  35;  Interest,  148,  page  35;  Discount,  148,  page  35;  Loss  and  Gain 
account  (for  partnership),  151,  page  36;  Stuient's  and  Leonard's  accounts,  152,  page  30. 

Note. — Tlie  debit  and  credit  sides  of  your  Ledger  remain  equal  after  closing  the  above  mentioned  accounts,  the  same 
as  though  all  the  accounts  liad  been  closed,  since  the  amount  entered  to  close  an  account  was  immediately  transferred, 
either  to  the  opposite  side  of  the  account  closed,  or  of  some  other  account.  The  accounts  which  remain  unclosed  show 
only  Resources  and  Liabilities,  the  difference  between  which  is  the  Present  Worth,  as  exhibited  by  tlic  partners'  accounts. 

Before  proceeding  with  May,  present  your  books  to  the  teacher  for  approval,  and  be  prepared  lo  answer  the  following 

QUESTIONS   FOR   REVIEW.      . 

Page  41.—'"  What  is  a  Draft?  '"-"«  What  are  the  parties  to  a  draft  called?  '"  How  is  the  draft 
employed?  '*'"' State  the  three  ways  of  drawing  drafts  in  reference  to  time.  '"  What  is  meant  by 
"Acceptance"  when  applied  to  drafts? 

Page  42. — '"'""  Give  general  rule  for  journalizing  drafts  when  drawn  on  account. 


54,  pa.  7. 
40,  pa.  6. 


47,  pa.  6. 
68,  pa.  7. 


MAY    1,   188-. 

Alexander  Mitchell  has  this  day  been  admitted  as  a  partner  in  the  business  of  Student  and 
Leonard.  The  name  of  the  new  firm  is  to  be  Student,  Leonard  &  Co.  The  gains  and 
losses  are  to  be  shared  as  follows:     Student,  f ;  Leonard,  |;  and  Mitchell,  \. 

Alex.  Mitchell  invests  cash,  1000,  and  the  store  now  occupied  by  the  firm,  valued  at  3000. 

J? 

Sold  Barton  &  Hathaway,  Binghamton,  25  bbls.  Flour,  @  8.40.  Rec'd  in  payment,  cash, 
100.00.     Balance  on  % 

2. 
Took  out  Policies  of  Insurance  of  2,000.00  on  store,  and  5,000.00  on  contents,  for  one  year, 
with  A.  S.  Gatchell,  agent.     Paid  premium  on  same  in  cash,  60.00. 

?j 

Bo't  of  Crouse  Bro's,  Syracuse,  100  bbls.  Salt,  @  2.15.  Accepted  their  draft  on  us,  at  15 
days'  sight,  payable  at  College  Bank,  for  same. 

4. 
Sold  Gates  &  Sheldon,  on  their  note  at  20  days,  with  interest,  50  bbls.  Salt,  @  2. 60. 

6. 
Paid  H.  W.  Stevens,  cash  to  balance  "jc.     (See  note  below.) 

7. 
Bo't  of  Henry  D.  French,  Buffalo,  25  bbls.  Beef,  @  14.25;   30  bbls.  Pork,  @  11.50.     Gave 
him  in  payment,  our  note  at  15  days,  with  interest,  345.00.     Balance  on  "jc. 

9.  . 

Rec'd  cash  of  Moore  &  C,  for  their  note  of  April  0,  due  to-day.     (See  note  below.) 

10. 
Paid  W.  A.  Bancroft's  sight  draft  on  us,  by  check  on  College  Bank,  50.00. 

Note. — Student  will  find  it  necessary,  hereafter,  to  consult  his  books,  to  ascertain  amounts  left  blank  in 
the  record,  such  as  balances  due  on  personal  accounts,  which  will  be  found  in  the  Ledger  if  the  work  his 
all  been  posted;  also  particulars  regarding  notes,  which  will  be  found  in  the  Day  Book  record  at  tlie  tim^ot 
giving  or  receiving  them. 


60 


no,  p.  27. 
112,  p.  27. 


23,  pa.  6. 

54,  pa.  7. 
m,  p.  27. 


67,  pa.  7. 
76,  pa.  7. 
Ul,  p.  27. 


THEORETICAL   AND    PRACTICAL   BOOK-KEEPING, 

12. 


Deposited  in  College  Bank  cash  100.00. 


14. 


Bo't  a  draft  on  New  York,  200.00,  at  ^  ^  exchange.    Paid  for  same  by  check  on  College  Bank, 
200.50.     Kemitted  draft  to  Beekman  &  Ordway,  on  "je. 

16. 
Eec'd  cash  of  Sickles,  Stover  &  Jackson,  to  balance  "jc  (see  note  bottom  page  49). 

Rec'd  cash  of  R.  H.  Barnard,  for  his  note  of  Apr.  23d,  and  interest,  due  to-day. 

18. 
Sold  E.  F.  Sharpsteen,  Elmira,  630  gals.  N.  0.  Molasses,  @  COc;   2500  lbs.  Sugar,  @.13ic. 
Rec'd  in  payment,  his  note  at  CO  days,  indorsed  by  B.  W.  Crossman,  378.00.     Balance 
on  f^c.  (See  forms  of  Indorsement,  page  159.) 

20. 
Our  acceptance  of  2d  inst.,  favor  Grouse  Bro's,  due  to-day,  has  been  charged  to  our  "je  at 
College  Bank. 

Rec'd  cash  of  Barton  &  Hathaway,  to  apply  on  "jc,  50.00. 

21. 
Prepaid  our  acceptance  of  Apr.  26th,  favor  of  Beekman  &  0.,  by  check  on  College  Bank. 
Face  of  acceptance,  315. 00;  discount  to  maturity,  38  days. 

24. 
Paid  cash  for  permanent  repairs  on  store,  100.00.     (Debit  Real  Estate.) 

25. 
Paid  our  note  of  7th  inst.,  and  interest  on  same,  due  to-day,  in  cash.     Face  of  note,  345.00; 

interest  to  date,  18  days. 

•  26. 

Rec'd  of  Jas.  T.  Hoag,  his  check  on  Traders'  Bank,  to  apply  on  °je,  50.00. 

J? 
D.  W.  Leonard  drew  from  the  business,  for  his  private  use,  by  check  on  College  Bank,  100.00. 

27. 
Gates  &  Sheldon  paid  their  note  of  4th  inst.,  and  interest,  due  to-day,  in  cash. 

28. 
Sold  Moore  &  Collins,  on  %  10  bbls.  Beef,  @  17.25;  10  bbls.  Pork,  @  14.00. 

29. 
Paid  Wells,  J.  &  Co.'s  draft  on  us,  at  60  days'  sight,  200.00,  less  discount,  63  days,  by  check 
on  College  Bank. 

Sold  Clark,  Sons  &  Bradley,  on  %  20  bbls.  Sugar,  5000  lbs.,  @  12ic. 

30. 

Bo't  of  David  Bailey,  10  bbls.  Sugar,  2500  lbs.,  @  ll^c.     Paid  him  cash,  100.00;  check  on 

College  Bank,  100.00.     Balance  on  % 

31. 

Paid  Bookkeeper's  Salary  for  month  in  cash,  75.00. 

Deposited  in  College  Bank,  Iloag's  check,  rec'd  26th  inst.,  50.00;  and  cash,  1500.00. 

Note. — You  may  now  journalize,  post  and  take  trial  balance.  Should  your  trial  balance  not  prove,  see 
note  No.  2,  page  26.  In  po.sting,  when  an  account  balances  in  your  Ledger,  rule  it  up  at  once.  Before  an 
account  becomes  too  mucli  crowded  for  space,  rule  it  up  and  transfer  to  a  new  account,  as  instructed  in  154- 
155,  page  36.  Foot  the  accounts  in  pencil,  as  instructed  heretofore  for  taking  trial  balance.  You  need  not 
make  a  Balance  Sheet  this  mouth,  nor  close  any  of  the  accounts  in  the  Ledger.  The  difference  between  the  Dr. 
and  Cr.  .sides  of  a  few  of  the  principal  accounts  are  here  given:  Wells,  J.  &  Co.,  68  75;  Bills  Payable,  balances; 
Discount,  4  04;  College  Bank,  7556.78;  Cash,  313.13;  Clark,  Sons  &  B,,  1113.94-  Mdse  ,  1124.63,  Expense, 
400.50;  Bills  Receivable,  378.00;  Interest,  34c.  If  your  trial  balance  proves  your  Ledger  to  be  In  balance,  and 
your  accounts  agree  with  the  balances  given  above,  you  may  proceed  with  .June. 


THEORETICAL    AND    PRACTICAL    BOOK-KEEPING. 


51 


no,  p.  27. 
T5,  pa.  7. 
80,  pa.  7. 


JUNE   1,   188-. 

Discounted,  at  College  Bank,  Sliarpsteen's  note,  rec'd  May  18th.     Discount  off  to  maturity. 
Proceeds  placed  to  our  credit.     (See  Note  No.  1,  below.) 

2. 
Sold  F.  W.  Warren,  on  ^^c,  5  bbls.  Sugar,  1350  lbs.,  @  12|c. 

Paid  Henry  D.  French's  sight  draft  on  us,  by  check  on  College  Bank,  300.00. 

3. 
Kec'd  cash  of  Clark,  Sons  &  Bradley,  on  %  400.00. 

5. 
Sold  A.  &  D.  Farwell,  Canton,  10  bbls.  Beef,  @  16.25;    10  bbls.  Pork,  @   13.50;    10  hhds. 
N.  0.  Molasses,  630  gals.,  @  60c.     Kec'd  in  payment,  their  note  at  10  days,  with  interest, 
150.00.     Balance  on  <^. 

6. 
Accepted  David  Bailey's  draft  at  30  days,  favor  Marsh  &  Co.,  to  balance  "fc. 

7. 
Bo't  of  Beekman  &  Ordway,  on  "fc,  5  hhds.  N.  0.  Molasses,  315  gals,  @  55c. 

8. 
Eec'd  of  R.  H.  Barnard,  his  check  on  First  National  Bank,  to  balance  "^. 

9. 
Eec'd  of  E.  F.  Sharpsteen,  his  note  at  30  days,  indorsed  by  B.  W.  Crossman,  on  '^c,  250.00. 

12. 
Bo't  of  Henry  D.  French,  25  bbls.  Beef,  @  14.25.     Accepted  his  draft  on  us  at  10  days,  for 


175.00.     Balance  on  a/c. 


13. 


Deposited  in  College  Bank  Barnard's  check,  rec'd  8th  inst. 

14. 
Sold  Sickles,  S.  &  J.,  25  bbls.  Flour,  @  8.25;    1250  lbs.  Sugar,  @  135c.     Rec'd  in  payment, 
cash,  50.00;  their  note  at  45  days,  75.00.     Balance  on"/c. 

15. 
Drew  a  draft  on  Barton  &  H.,  Binghamton,  at  90  days,  to  balance  their  (Jc.     Had  the  draft 
discounted  at  College  Bank,  and  rec'd  credit  for  proceeds. 

16. 
Paid  W.  A.  Bancroft,  cash  to  balance  "/e,  55.00. 

Note  No.  1. — From  June  1,  the  day  tlie  above  note  is  discounted,  to  July  20,  its  maturity,  the  time  is  49 
days,  counting  the  actual  number  of  days.  The  student  will  remember  that  if  the  time  is  in  days,  365  days,  or 
if  the  time  is  in  months,  13  months  for  a  year,  are  to  be  taken  as  a  basis  in  compulmg  interest  and  discount, 
unless  otherwise  specified. 

When  paper  is  drawn  in  months,  the  practice  differs,  somewhat,  with  places  and  individuals,  as  to 
the  manner  of  finding  time,  and  compiiiing  interest  and  disconnt.  For  the  sake  of  uniformity  and  accu- 
racy, the  method  explained  below  will  be  observed  throughout  (his  book.  To  illustrate:  A  note  of  $500, 
dated  May  17,  at  4  months,  is  discounted  June  23.     The  time  between  June  33,  the  day  the  note  is  discounted, 

,  o     .      u     oA  .1,         .     •.      f  ii,         .      \^   mo.   20  da.  )  The  discount  for  2  months  is  5.00 
and  September  20,  the  matunty  of  the  note,   ig     ..      as     "    C     "  "  "   27  davs     "2  22 

2  mo.  27  days  =  7.23 

If  the  note  to  be  diacoiinted  is  an  interest  bearing  note,  first  compute  the  interest  upon  the  face  of 
the  note  from  the  date  it  begins  to  draw  interest  to  maturity;  then  add  the  interest  to  the  face  of  the  note, 
and  compute  discount  upon  the  amount  thus  obtained,  from  the  date  of  discounting  the  note  to  its  rpiiturity. 
The  face,  plus  the  interest,  minus  the  discount,  will  be  the  proceeds  of  the  note. 


52 


THEOKETIOAL    AND    PRACTICAL   BOOK-KEEPING. 


59,  pa.  7. 

75,  pa.  7. 

23,  pa.  6. 

48,  pa.  6. 


23,  pa.  6. 
75,  pa.  7. 
60,  pa.  7. 
Ul,  p.  27. 


17. 

Sold  Jas.  T.  Hoag,  400  lbs.  J.  Ccflee,  @  35c.;  25  bbls.  Beef,  @  16.50.  Eec'd  in  payment,  a 
note  made  by  Clias.  II.  Fisher,  in  Hoag's  favor,  dated  Mar.  2otli  last,  at  90  ds.  with 
interest,  275.00.    Accrued  interest  allowed  him.    Balance  on  <yc.     (See  note  No.  l,1Jelow.) 

18. 
A.  &  D.  Farwell  jmid  their  note  of  5th  inst.,  and  interest,  due  to-day,  in  cash. 

19. 
Drew  sight  draft  on  F.  W.  Warren,  Avon,  and  deposited  in  College  Bank  to  our  credit. 
Amount  of  draft,  50.00;  Bank's  charges  for  collecTion.  25c.     Balance  to  our  credit. 

20. 
Sold  E.  F.  Sharpsteen,  on  "jc,  5  hhds.  N.  0.  Molasses,  .315  gals.,  @  62 Jc. 

21. 
Student  drew  cash  from  the  business,  for  his  own  use,  75.00. 

22. 
Paid  Henry  D.  French,  the  note  rec'd  of  Sickles,  S.  &  J.,  14th  inst.,  75.00.      Discount  to 
maturity  allowed  him.     Gave  him  our  check  on  College  Bank,  to  balance  his  «/c.     262.99. 

23. 
The  draft  drawn  on  Warren,  19th  inst.,  was  to-day  returned  protested  for  non-payment.     Pro- 
test fees,  1.25.     Gave  the  Bank  a  check  to  cover  draft  and  fees,  51.25.     (See  Note  No.  2, 
below. ) 

24. 

Accepted  Beekman  &  Ordway's  draft  on  us,  at  30  days'  sight,  favor  of  themselves,  150.00. 

25. 
Eec'd  cash  of  E.  P.  Sharpsteen,  on  %  131.25. 

?j 

Paid  our  acceptance  of  12th  inst.,  favor  of  French,  by  check  on  College  Bank. 


Deposited  in  College  Bank,  cash,  500.00. 


29. 


Paid  our  acceptance  of  6th  inst.,  favor  of  Marsh  &  Co.,  by  check  on  College  Bank. 

30. 
Paid  Bookkeeper's  Salary  in  cash,  75.00. 

Note  No.  1. — As  this  note  has  been  drawing  interest  since  March  25tli,  it  is  worth  considerably  more  tlian 
its  face  at  tliis  time. 

Note  No.  2. — The  fees,  under  some  circumstances,  might  properly  be  charged  to  "Warren's  account;  but  in 
this  case  we  charge  them  to  Expense  account. 


INVENTORIES,  JUNE   30,  188-. 

MDSE. 
50  bbls.  Salt,  @  2.15;  5  bbls.  Beef,  @  14.25;   10  bbls.  Pork,  @  11.50.     Total  Mdse.  Invt.,..       293  75 

REAL  ESTATE. 
Store,  owing  to  advance  in  Real  Estate,  estimated  to  be  worth  at  present  time 3500  00 

EXPENSE. 

Office  Safe  and  Office  Books,  valued  at- 200  00 

Insurance,  10  months  unearned  premium, 50  00 

250  00 


Leonard  and  Mitchell  propose  to  buy  Student's  interest  in  the  business,  and  pay  him  cash,  as  his 
Present  Worth  shall  show  upon  closing  the  Ledger,  they  assuming  all  the  resources  and  liabilities  of 
the  old  firm.  Student  agrees  to  the  proposition,  as  he  is  desirous  of  engaging  in  the  Produce  and 
Commission  business  on  July  1st. 


THEORETICAL    AND    PRACTICAL    BOOK-KEEPINO. 


53 


You  may  therefore  make  out  a  Balance  Sheet,  showing  the  exact  condition  of  the  business,  as 
heretofore  instructed. 

The  difference  between  the  Dr.  and  Cr.  sides  of  a  few  of  the  principal  accounts  in  your  Ledger, 
independent  of  inventories,  should  be  as  follows:  Bills  Payable,  150.00;  Discount,  41c.;  Cash, 
339.70;  Mdse.,  292.63;  Expense,  477.00;  Bills  Eeceivable,  5-^5.00;  Interest,  3.82;  College  Bank, 
7428.83. 

If  correct,  the  results  exhibited  by  your  Balance  Sheet  should  be  as  follows: 

SUMMARY. 


Total  Gains,         .... 
"     Losses,    .... 

98G 
231 

38 
23 

Student's  Net  Credit, 
f  Net  Gain, 

Present  Worth, 

D.  W.  Leonard's  Net  Credit, 

f  Net  Gain,  - 

Present  Worth, 

Alex.  Mitchell's  Net  Credit, 

"              i  Net  Gain,   - 

"              Present  Worth,  - 

Present  Worth  of  the  Firm,     - 

4840 
302 

39 
06 

5142 
5167 
4151 

Net  Gain  of  Firm,        ... 

755 

15 

48C5 
302 

4000 
151 

39 
06 

00 
03 

45 

Total  Resources,       -        -        - 
"     Liabilities,  .        -        -        . 

14817 
357 

93 

00 

Present  Worth  of  the  Firm,     - 

14460 

93 

45 

03 

14460 

93 

After  completing  Balance  Sheet,  balance  and  rule  up  all  of  the  accounts  in  the  Ledger.  (See 
General  Eules  for  Closing  the  Ledger,  page  35;  also  see  closed  Lodger,  on  pages  38  and  39).  After 
completing  the  work,  present  your  books  to  the  teacher  lor  inspection;  also  i)rcparo  fur  examination 
upon  all  the  work  passed  over,  as  outlined  by  the  following: 


QUESTIONS  FOR  REVIEW 

Page  5. — '  What  is  Book-keeping?  ^  The  object  of  it?  '"^  How  many  methods,  and  what  are  they? 
'What  are  the  princii)al  books  used?  '  Describe  the  Day  Book.  '  When  should  the  record  be  made  in 
the  Day  Book?  *  Why?  '  Describe  the  Journal.  '°  What  is  journalizing?  "What  must  be  the  condi- 
tion of  the  debits  and  credits  in  every  journal  entry?  "'"  IIow  may  the  Day  Book  and  Journal  be 
combined?  """  Describe  the  Ledger.  "  What  is  an  account?  """  How  many  sides  has  an  account,  and 
what  called?    ^  What  is  posting?    *^  How  many  kinds  of  accounts  in  Double  Entry? 

Page  6. — '^'*  Give  the  general  rules  for  journalizing.  "  Into  what  two  general  classes  are  the  three 
kinds  of  accounts  divided?  ™  When  does  an  account  exhibit  a  Loss?  ''When  a  Gain?  '*  When  a 
Resource?  ^  When  a  Liability?  "  Upon  which  side'  is  the  excess  when  an  account  shows  a  Resource? 
**  When  it  shows  a  Loss?  "  When  it  shows  a  Gain?  ''  When  it  shows  a  Liability?  '*""  Give  the  rule 
for  journalizing  the  Proprietor's  account.  "*  What  title  is  sometimes  used  in  place  of  the  proprietor's 
name?  '""Give  the  rule  for  Cash.  '"What  is  included,  usually,  under  this  title?  ^MVhen  there  is 
any  difference  in  this  account,  Avhich  side  will  always  be  greater?  *"'  Why?  *"'  What  is  the  difference^ 
and  what  does  it  show?  ""''Give  the  rule  for  Mdse.  '"What  is  usually  included  under  this  title? 
"  What  exception  to  including  all  goods  under  the  general  heading  Mdse. 

Page  7. — '"  To  what  other  accounts  will  the  rule  for  Mdse.  apply?  """  Give  the  rule  for  Expense. 
"  What  is  usually  included  under  this  title?  "  What  exceptions  to  including  all  such  items  under  the 
general  heading  Expense?  "'"Give  the  rule  for  Bills  Eeceivable.  'MVhat  is  usually  included  under 
this  title?  '*  Which  side  of  the  account  will  always  be  greater,  when  there  is  any  difference?  "  Why? 
"-"What  is  the  difference,  and  what  does  it  show?  "  When  will  the  account  balance  ?  Why?  "'**  Give 
the  rule  for  Bills  Payable.  "What  is  included  xinder  this  title?  '"Which  side  of  the  account  will 
always  be  greater,  when  there  is  any  difference?  "  Why?  "-"  What  is  the  difference,  and  what  does  it 
show?  "  When  will  the  account  balance?  Why?  """  Give  the  rule  for  Interest  and  Discount.  "  What 
is  Interest?  ™  What  is  Discount?  *»  To  what  other  accounts  will  the  rule  for  Interest  and  Discount 
apply? 


54  TflEORETICAL    AND     PRACTICAL    BOOK  KEEPING. 

Page  20.—*'  What  is  a  Trial  Balance?  ""**  Why  does  the  trial  balance  not  prove  the  work  abso- 
lutely correct?  "■**  Explain  footing  the  accounts  for  taking  a  trial  balance.  '*  When  may  an  account 
be  omitted  from  tlie  trial  balance  ? 

Page  21. — "  AVhat  is  tlie  character  of  the  error,  generally,  when  it  is  an  even  $1,  $10,  $100,  $1000, 
etc.  ?  '*'"  How  could  an  error  be  made  in  transferring  from  the  Ledger  to  the  trial  balance?  "  If  an 
amount  has  been  omitted  in  posting,  what  effect  will  it  have  upon  the  trial  balance?  '°°  What  if  posted 
to  tlie  wrong  side  of  the  Ledger?  '"*  How  may  the  error  have  been  caused,  if  it  is  divisible  by  9? 
103-107  Explain  the  steps  to  be  taken  in  reviewing  the  work,  when  this  course  is  found  necessary  in  order 
to  detect  the  error.  "*""*  In  examining  the  posting,  why  is  it  necessary  to  place  a  check  mark  in  the 
Ledger? 

Page  27. — '"*"'"  Give  the  rule  for  journalizing  Bank  account.  '"  How  should  the  checks  of  other 
persons  in  your  hands  be  treated? 

Page  31. — '"What  does  an  Inventory  generally  represent?  "M¥hat  may  it  represent?  '"What 
will  an  inventory  show  in  each  case?  '"  How  is  an  inventory  usually  taken?  '"  What  price  is  generally 
placed  upon  the  goods?     '"  In  what  other  way  may  an  inventory  be  found? 

Page  32. — '"  For  what  purpose  is  a  Balance  Sheet  made?  '"Describe  the  balance  sheet.  ""Into 
which  column  is  the  difference  between  the  Dr.  and  Cr.  footings  of  Cash  extended?  Wliy?  '^' Why  is 
the  Mdse.  inventory  entered  in  the  Eesource  column?  '-'""*  Explain  both  methods  of  finding  the  gain 
on  Mdse.  account,  when  there  is  an  inventory.  "^  When  the  Cr.  side  of  a  person's  account  is  larger 
than  the  Dr.,  to  which  column  is  the  difference  extended?  Why?  "'When  the  Dr.  footing  is  the 
larger? 

Page  33. — '^  How  is  tlie  actual  loss  on  Expense  account  ascertained,  when  there  is  valuable  prop- 
erty on  hand,  whicli  was  originally  debited  to  the  Expense  account?  ™  What  does  tlie  difference  in 
the  Bills  Payable  account  show?  Why?  "°  In  the  Bills  Eeceivable  account?  Why?  '"  If  the  Cr.  side 
of  Interest  or  Discount  is  larger  than  the  Dr.,  why  is  the  difference  a  gain?  "'  If  the  Dr.  side  is  larger, 
why  is  the  difference  a  loss?  "^  What  does  the  difference  in  Eeal  Estate  account  show?  Why?  '"  In 
Bank  account?    Why? 

Page  34. — What  is  tlie  difference  between  the  total  gains  and  total  losses  called?  (Summary;  see 
also  135,  page  33.)  Give  the  two  ways  of  finding  the  Present  Worth  of  tlie  proprietor.  (Summary;  see" 
also  136,  page  33.)  When  the  liabilities  exceed  the  resources,  what  is  the  difference  called?  (See  137, 
page  33.) 

Page  35. — '^''^What  accounts  is  it  necessary  to  close  to  cause  the  proprietor's  account  to  show  its 
true  relation  to  the  business?  '*°Why  is  it  not  necessary,  for  this  purpose,  to  close  the  remaining 
accounts?  '**In  closing  the  Ledger,  why  are  the  personal  accounts  usually  not  closed?  '""'"How  are 
accounts  showing  losses  and  gains  having  inventories,  closed?  "'How  if  they  have  no  inventories? 
"^How  are  accounts  showing  resources  and  liabilities  closed? 

Page  36. — '^'  How  is  the  Loss  and  Gain  account  to  be  closed?  How  in  case  of  a  partnership? 
"'How  is  the  Proprietor's  account  to  be  closed?  '"In  ruling,  what  kind  of  ink  is  to  be  used? 
'"-'"When  the  space  assigned  to  an  account  has  been  filled,  how  is  the  account  transferred?  "'  What 
do  red  ink  entries  in  the  Ledger  indicate? 

Page  37. — "'-'"After  the  Ledger  has  been  closed,  what  is  shown  by  the  balances  that  have  been 
carried  down  below  the  rulings  of  the  various  accounts? 

Page  40. — "'""*'  In  closing  the  accounts,  why  has  the  equality  of  the  Ledger  not  been  disturbed? 
161-162  jjo^  (Jo  yon  prove  the  closed  Ledger  to  be  in  balance? 

Page  41.—"'  What  is  a  Draft?  '"""'  What  are  the  parties  called?  "'  What  is  the  advantage  of  the 
draft  ?  "*"'"  How  drawn  with  reference  to  time  ?  '"  For  what  are  Sight  Drafts  presented  to  the 
Drawee?  '"Time  Drafts?  """What  is  meant  by  Acceptance,  and  how  made?  '"  AVhen  is  it  not 
necessary  to  date  the  acceptance?  '"  When  does  the  Drawee  become  legally  responsible  to  the  Payee? 
118-179  jjow  may  a  draft  be  drawn  so  that  one  of  the  parties  shall  sustain  a  double  relation  to  it? 
180-181  Explain  the  use  of  Bank  Drafts?  "'  Give  Drawer's  entry  when  he  draws  a  draft  and  remits  it  to 
Payee  on  account.     "^  When  he  disposes  of  it  for  cash,  less  discount. 

Page  42. — "*  Give  Drawee's  entry  when  he  accepts  a  draft  drawn  on  him.  "'  When  he  pays  sight 
draft  on  him  in  cash.  '*'  When  he  prepays  draft,  less  discount,  instead  of  accepting  it.  '«'  When  he 
pays  his  acceptance  at  maturity.  "*  Give  Payee's  entry  when  he  receives  time  draft  from  Drawer  on 
account.  "'  When  Drawee  prepays  draft,  less  discount,  instead  of  accepting  it.  ""'  When  he  buys  draft 
for  cash,  less  discount.     '"'*'  Give  general  rule  for  journalizing  drafts  when  drawn  on  account. 


THKORETICAL    AND    PKACTICAL    BOOKKEEPING. 


55 


NoTK. — Before  proceeding  with  the  montli  of  July,  study  carefully  the  following  explanations  and  examples. 

SHIPMENTS. 


Dr. 

'"  Shipment  is  debited  at  the  time  the  property 
is  shipped,  for  its  estimated  value  (usually  its  cost), 
and  for  all  expenses. 


Cr. 

'**  Shipment  is  credited  at  the  time  of  receiving 
an  account  sales,  for  the  net  ])roceeds. 


"'  When  property  is  shipped  to  bo  sold  on  commission,  the  person  who  shijis  it  opens  an  account 
upon  his  books  with  "  Shipment,"  to  represent  the  property  which  has  passed  from  his  possession,  but 
not  from  his  ownership.  '°°  To  distinguish  different  shipments,  the  name  of  the  place  or  party  is 
generally  used  with  the  number  of  the  shipment,  thus:  "Shiptaent  to  Detroit,  No.  1,"  "Shipment 
to  Brown  &  Co.,  Baltimore,  No.  3,"  etc.  '"The  person  who  shijjs  the  jiropcrty  is  called  the  "Con- 
signor." "*  After  the  property  has  been  disposed  of,  a  statement  showing  the  sales  and  all  the  charges 
is  rendered  to  the  Consignor.  Such  a  statement  is  called  an  "Account  Sales."  "'The  difference 
between  the  sales  and  all  the  charges  is  called  the  "Net  Proceeds."  '""After  the  Shipment  has  been 
credited  with  the  net  proceeds,  it  will  show  either  a  gain  or  a  loss.  '"'  If  a  statement  of  the  business 
were  to  be  made  before  receiving  an  account  sales,  the  value  of  the  shipment  would  be  treated  as  a 
resource  inventory. 

CONSIGNMENTS. 


Dr. 

"'  Consignment  is  debited  for  all  charges  paid 
when  the  property  is  received,  and  also  for  all 
subsequent  charges,  and  for  the  net  proceeds  at 
the  time  of  rendering  the  account  sales. 


Cr. 
^  Consignment  is  credited  for  all  sales  of  prop- 
erty belonging  to  it. 


***  When  property  is  received  to  be  sold  on  commission,  the  party  receiving  it  opens  an  account 
upon  his  books  with  "Consignment,"  to  represent  the  property  which  has  come  into  his  possession, 
but  not  his  ownership.  *"'  To  distinguish  different  consignments,  the  name  of  the  Consignor  is  gener- 
ally used  and  the  number  of  the  consignment,  thus:  "J.  D.  Winslow's  Consignment  No.  2,"  etc. 
'"'  The  party  who  receives  the  property  is  called  the  "  Consignee."  ""  After  the  closing  entry  has  be^n 
made,  debiting  the  consignment  for  the  final  charges  and  net  proceeds,  the  consignment  will  balance. 
'°*  If  a  statement  of  the  business  were  to  be  made  before  closing  the  consignment,  and  the  charges 
upon  it  to  the  time  of  the  statement  exceeded  the  sales,  the  difference  would  be  a  resource.  ""  If  the 
sales  exceeded  the  charges,  the  difference  would  be  a  liability. 


EXAMPLE    No.  42. 


DAY   BOOK    RECORD. 


ITEMS. 

TOTAI,. 

2500 
6 

25 

2506 

25 

JOURNAL    ENTRY   FOR   SAME. 

DR. 


Shipped  AVood  &  Martin, 
Palmyra,  to  be  sold  on 
our  account  and  risk, 
2000  bu.  R.  Wheat,  @  1.25, 
Paid  insurance  in  cash. 


Ship't  to  W.  &  M.,  Palmyra, 
No.  1, 

To  Mdse. 
Cash, 


2506 

i 

25 

2500 
6 

25 


Shipment  is  debited  for  the  vahie  of  the  property  and  also  for  the  expense  of  insuring  same. 
(See  193,  page  55.) 


EXAMPLE    No.  43. 


DAY   BOOK   RECORD. 


JOURNAL   ENTRY   FOR   SAME 


Rec'd  an  account  sales  of 
the  shipment  made  Wood 
&  Martin, 

Our  net  proceeds  remitted 
in  cash. 


2850 


Cash, 

To   Sliip't   to   W.   &  M., 
Palmyra,  No.  1, 


2850 


2850 


Shipment  is  credited  for  the  net  proceeds  (see  194,  page  55).     In  this  case  Shipment  shows  a  gain, 
the  net  proceeds  being  greater  than  the  cost  (see  200,  page  55). 


u 


THEOKETICAL    AND    PRACTICAL    BOOKKEEPING 


EXAMPLE    No    44 


DAT   BOOK   RECORD. 


ITEMS. 

TOTAL. 

1250 
50 

1300 

JOURKAL    ENTRY   rOR   SAME. 

DR. 


Shipped  J.  D.Welch,  New 
Vernon,  to  be  sold  on 
our  account  and  risk, 
50C  bbls,  Apples,  @  2.50, 
Paid  freight  in  cash. 


Ship't  to  J   D.  W.,  New 
Vernon,  No.  1, 

To  Mdse. 
Cash, 


1300 


1250 
50 


EXAMPLE    No.  45. 


DAT    BOOK   RECORD. 


JOURNAL   ENTRT   FOB   SAME. 


Eec'd  an  account  sales  of 
the  shipment  made  J. 
D.  Welch, 

Our  net  proceeds  credited, 


1225 


J.  D.  Welch, 

To  Ship't  to  J.  D.W.,  New 
Vernon,  No.  1, 


1225 


1225 


In  this  ease  the  Shipment  shows  a  loss,  the  net  proceeds  being  less  than  the  cost.     (See  200, 
page  55.) 


EXAMPLE    No.  46. 


DAT   BOOK    RECORD. 


JOURNAL   ENTRT   FOR   SAME. 


Rec'd  from  Church  &  Co., 
Toledo,  to  be  sold  on 
their  account  find  risk, 

5000  bu.  W.  Oats. 

Paid  freiglit  in  cash. 


1 

200 

Church  &  Co.'s  Consign- 
ment No.  1, 

To  Cash, 


200 


200 


Consignment  is  debited  for  the  charges  paid  on  the  jjroperty  at  the  time  it  is  received.     (See  202, 
page  55.) 

EXAMPLE    No.  47. 

DAY   BOOK   RECORD.  JOURNAL   ENTRT    FOR   SAME. 


Sold  E.  B.  Prye,  for  cash, 
from  Church  &  Co.'s 
Consignment  No.  1, 

5000  bu.  Oats,  @  42c., 


2100 

Cash, 

To  Church  &  Co.'s  Con. 
No.  1, 


2100 


2100 


Consignment  is  credited  for  all  sales  made  from  it.     (See  203,  page  55.) 


EXAMPLE    No.  48. 


DAY   BOOK    RECORD. 


JOURNAL   ENTRY   FOB   SAME. 


Closed    Church    &    Co.'s 
Con.   No.    1,    and    ren- 
dered an  account  sales. 
Storage,  at  -Jc.  per  bu., 
Commission,  2  ^  on  sales, 
Church  &  Co.'s  net  pro- 
ceeds remitted  in  cash. 


25 
42 

1833 

1900 

Church  &  Co.'s  Consign- 
ment No.  1, 

To  Storage, 
Commission, 
Cash, 


1900 


25 

42 

1833 


Consignment  is  debited  at  the  time  of  rendering  the  account  sales>  for  the  charges  and  the  net 
proceeds  (see  202,  page  55).  The  net  proceeds  of  the  above  consignment  are  found  by  deducting  all 
charges  from  the  sales,  as  follows:  (Ex.  No.  46)  Freight,  200;  (Ex.  No.  48)  Storage,  25;  Commission, 
42;  Total  charges,  267.  Total  sales  (Ex.  No.  47),  2100;  leaves  the  Net  Proceeds,  1833  (see  199,  page 
55).  The  above  consignment  will  balance,  because  in  Ex.  No.  46  it  is  debited  200,  in  E.x.  No.  48  1900, 
and  m  Ex.  No.  47  it  is  credited  2100  (see  207,  page  55). 


THEORfiTlCAL    AND    PliACTtCAL    BOOK-KEEPING. 

EXAMPLE    No.  49. 


DAT   BOOK    RECORD. 


ITEMS.  TOTAL. 


JOURKAL  ENTRY  FOR  SAME. 

DR. 


fe7 


Eec'd  from  H.  G.  Lyman, 
Ovid,  to  be  sold  on  his 
account  and  risk, 

1000  bu.  S.  Wheat,. 

Paid  freight  in  cash, 


50 


II.   G.  Lyman's   Consign- 
ment No.  1, 

To  Cash, 


50 


50 


DAT   BOOK    RECORD. 


EXAMPLE    No.  50 


JOURNAL   ENTRT   FOR   SAME. 


Sold  Boyd  &  Son,  on  %  at 
30  days,  from  Lyman's 
Consignment  No.  1, 

500  bu.  S.  Wheat,  @  1.40, 


700 

Boyd  &  Son, 

To  Lyman's  Consignment 

No.  1, 


700 


700 


DAT   BOOK    RECORD. 


EXAMPLE    No.   51. 


JOURNAL   ENTRT   FOR   SAME. 


Paid  cartage,  in  cash,  on 
500  bu.Wheat,  sold  Boyd 
&  Son,  from  Lyman's 
Con.  No.  1, 


10 


Lyman's  Consignment  No. 

1, 

To  Cash, 


10 


10 


DAT   BOOK    RECORD. 


EXAMPLE    No.  52. 


JOURNAL   ENTRT   FOR   SAME. 


Sold  G.  E.  Seney,  on  his 
note  at  30  days,  from 
Lyman's  Con,  No.  1, 

300  bu.  S.  Wheat,  @  1.45, 


435 


Bills  Eec'v, 

To  Lyman's  Consignment 
No.  1, 


435 


435 


DAT   BOOK   RECORD. 


EXAMPLE    No.  53. 


JOURNAL   ENTRT   FOR   SAME. 


Ee-shipped  the  200  bu. 
Wheat  unsold  of  Ly- 
man's Con.  No.  1,  per 
his  instructions,  to  E. 
B.  Phelps,  Fairport. 

Paid  cartage  on  same  in 
cash. 


3 

50 

Lyman's  Consignment  No. 

1, 

To  Cash, 


50 


50 


EXAMPLE    No.   54. 


DAT   BOOK    RECORD. 


JOURNAL   ENTRT   FOR   SAME. 


Closed  Lyman's  Consign- 
ment  No.   1,  and   ren- 
dered an  account  sales. 
Storage,  at  Ic.  per  bu.. 
Commission,  2  ^  on  sales, 
H.  G.  Lyman's  net   pro- 
ceeds    placed     to     his 
credit. 


10 

22 

70 

1038 

80 

1071 

50 

Lyman's  Consignment  No. 

To  Storage, 
Commission, 
H.  G.  Lyman, 


1071 

50 

10 

22 

1038 

70 

80 


The  net  proceeds  of  the  above  consignment  are  found  bv  deducting  all  of  the  charges  from  the 
sales,  as  follows:  (Ex.  No.  49)  Freight,  50;  (Ex.  No.  51)  Cartage,  10;  (Ex.  No.  53)  Cartage,  3.50; 
(Ex.  No.  54)  Storage,  10;  Commission,  22.70;  total  charges,  96.20.  Sales,  (Ex.  No.  50)  700;  (Ex.  No. 
52)  435;  total  sales,  1135.     Leaves  the  Net  Proceeds,  1038.80. 

Note. — In  tlie  Commission  business,  a  book  called  the  Sales  book  is  usually  kept,  in  which  all  entries  relating  to 
Consignments  are  made  and  posted  directly  to  the  Ledger.  The  Sales  Book  is  not  to  be  used  in  the  business  o£  the  two 
following  months,  but  will  be  explained  and  illustrated  hereafter. 


58 


THEORETICAL    AND    PKAOTlCAL    BOOK-KEEPING. 


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-i*£?i 


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da 


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*rilEORETlCAT.    AND    PRACTICAL    SOOR-KfeEMNG. 


59 


Ex.  <»,  P 
56. 


Ex.  44,  p. 

56. 


Ex.  49,  p. 

57. 


Ex.  52,  p. 
57. 


Ex.  45,  p. 

56. 


JULY  10,  188—. 

Closed  Clark's  Con.  No.  1  and  rendered  an  <^  Sales.     Storage,  lcp?r1)H.,  .5.00.     Com- 
mission, 2^  on  sales,  15.00.     Net  proceeds  remitted  to  hiai  in  cash,  700.00. 

Paid  Dodge  &  Hardy's  Bill  for  Office  Books  and  Stationery  in  cash,  31.25. 

11. 
Shipped  Dow  &  Todd,  Lodi,  to  be  sold  on  my  account  and  risk,  250  bu.  W.  Oats,  @  45o.     Paid 


cartage  in  cash,  2.00. 


12 


202,  p.  55. 
205,  p.  55. 


303,  p.  55. 


Ex.  54,  p. 

57. 


193,  p.  55. 
196,  p.  55. 


203,  p.  55. 


23,  pa.  6. 
60,  pa.  7. 


202,  p.  55. 


193,  p.  55. 


Bo't  of  Wm.  B.  Hoyt,  on  my  note  at  10  days,  with  interest,  3500  bu.  Barley,  @  90c. 

13. 
Rec'd  from  W.  J.  Corning,  Waterloo,  to  be  sold  on  his  account  and  risk,  1000  bu.  White  Wheat. 
Paid  freight  in  cash,  65.00. 

15. 

Sold  N".  C.  Hubbard,  on  his  note  at  5  days,  from  Coming's  Con.  No.  1,  400  bu.  W.  Wheat,  @ 
1.40. 

16. 
Paid  J.  C.  King  cash  on  <f:,  300.00. 

Rec'd  from  Dow  &  Todd,  Lodi,  an  Account  Sales  of  the  shipment  made  them  11th  inst.     Net^^ 
proceeds  to  my  credit,  102.75. 

17. 
Sold  Jno.  D.  Mason,  Richfield,  on  <^,  250  bu.  AV.  Oats,  @  50c.;  1500  bu.  Barley,  @  1.00. 

18. 
Rec'd  from  J.  B.  Clark,  Clyde  (2d  consignment),  to  be  sold  on  his  account  and  risk,  300  bu. 
Red  Wheat.     Paid  Freight  in  cash,  18.00. 

19. 
Sold  Rob't  G.  Laidlaw,  on  <yc,  at  10  days,  from  Coming's  Con.  No.  1,  COO  bu.  W.  Wheat,  @ 
1.42. 

Closed  Coming's  Con.  No.  1,  and  rendered  an  Account  Sales.  Storage,  at  Ic.  per  bu.,  10.00, 
Commission,  2  ^  on  sales,  28.24.  W.  J.  Coming's  net  })roceeds  placed  to  his  credit, 
1308.76. 

21. 

Shipped  G.  H.  Wheeler,  Bristol  (2d  shipment),  to  be  sold  on  my  account  and  risk,  500  bu.  W. 
Oats,  @  45c.;  500  bu.  Barley,  @  90c. 

22. 
Sold  for  cash,  from  Clark's  Con.  No.  2,  100  bu.  R.  Wheat,  @  1.35. 

23. 
N.  C.  Hubbard  paid  his  note  of  15th  inst.  in  cash.    Remitted  the  cash  to  W.  J.  Corning  on  ^. 

,24. 
Bo't  of  C.  D.  Mathews,  on  my  note  at  25  days,  with  interest,  3000  bu.  Mixed  Oats,  @  40c. 

?? 

Rec'd  from  Morey  &  Co.,  Richmond,  to  be  sold  on  their  account  and  risk,  800  bu.  Corn.  Paid 
Freight  in  cash,  60.00. 

25. 
Paid  my  note  of  12th  inst.  in  cash. 

»? 

Shipped  M.  &  D.  Fisher,  Easton,  to  be  sold  on  my  account  and  risk,  2000  bu.  Mixed  Oats,  @ 
40c.;  1500  bu;  Barley,  @  90c.     Paid  Insurance  in  cash,  10.75. 

26. 
Rec'd  from  G.  H.  Wheeler,  Bristol,  an  Account  Sales  of  the  shipment  made  him  21st  inst. 
My  net  proceeds  remitted  in  cash,  798.99. 

jj  ~ 

Rec'd  cash  of  Dow  &  Todd,  in  full  of  "fr. 


eo 


THEORETICAL   AXD    PRACTICAL    BOOK-KEEPING. 


184,  p.  iS 


S9,  pa.  7. 
24,  pa.  6. 


27. 
Accepted  W.  J.  Coming's  draft  on  me  at  15  days'  sight,  to  apply  on  "fc,  500.00. 

29. 
Sold  for  cash,  from  Clark's  Con.  No.  3,  100  bu.  E.  Wheat,  @  1.37. 

30. 
Kec'd  of  R.  G.  Laidlaw,  his  note  at  20  days,  with  interest,  to  balance  <fc. 

31. 
Paid  Eent  of  Warehouse  for  the  month,  50.00,  and  Laborer's  services  in  full,  25.00,  in  cash. 


INVENTORIES,  JULY  31,  188-. 

M  DSE.— 1000  bu.  Barley,  @  90c. ;  1000  bu.  :M.  Oats,  @  40c.     Total, 1300  00 

SHIPMENT  to  M.  &  P.  Fisher,  Easton,  No.  1, 2160  76 

Note.— Journalize  and  post.  Open  a  separate  account  for  each  Shipment  and  for  each  Consignment.  Give  Cash 
account  one  page  space;  Mdse.  one-half  of  a  page;  Bills  Payable,  Bills  Receivable,  Storage  and  Commis.sion,  one-third  of 
a  page  each ;  all  others  one-fourth  of  a  page  each.  After  posting  the  month,  make  a  Balance  Sheet,  and  close  only  the 
accounts  in  the  Ledger  showing  losses  and  gains. 

In  the  Calanco  Sheet  given  below  only  a  few  of  the  extensions  are  made,  the  student  being  required  to  complete  the 
extensions  and  prove  his  results.  They  should  agree  with  the  Summary  given  below.  After  you  have  performed  this 
*  work,  continue  the  same  business  through  the  month  of  August. 

TRIAL  BALANCE  AND  BALANCE  SHEET,  JULY  31,  188-. 


L.  F. 

DK.  FOOTING. 

CB.  FOOTISO. 

RESOUKCES. 

LIABILITIES. 

LOSSES. 

GAINS. 

Student, 

Cash, 

Mdse. 

Ship't  to  G.  II.  W.,  Bristol, 

No.  1, 
Storage, 
Commission, 
J.  C.  King, 
Expense, 

8408 
455 

lOG 

74 
25 

6000 
5353 

485 
15 
43 

73 
24 

30 
15 
43 

24 

Ship't  to  D.  &  T.,  Lodi,  No.  1. 

114 

50 

102 

75 

11 

75 

Bills  Payable, 

Bills  Receivable, 

J.  D.  Mason, 

Clark's  Con.  No.  2, 

18 

272 

254 

W.  J.  Corning, 

Ship't  to  G.  11.  W.,  Bristol, 

No.  2, 

675 

798 

99 

Morey  &  Co.'s  Con.  No.  1, 

60 

60 

Interest, 

6 

73 

Ship't  to  M.  &  P.  F.,  Easton, 

Inrt. 

No.  1, 

21G0 

75 

2160 

75 

SUMMARY. 


Total  Gains,  - 
"    Losses, 

Net  Gain, 

Total  Resources, 
"     Liabilities, 

Present  Worth,  - 


374 

73 

124 

73 

250 

00 

9052 

76 

2802 

76 

6250 

00 

Student's  Credit, 

"        Net  Gain,   - 

"       Present  Worth, 


6000  00 
250  00 

6250  00 


THEORETICAL    AND    PRACTICAL    BOOK-KEEPING. 


61 


193,  p.  55. 
198.  p.  55. 


202,  p.  55. 


Ex.  53,  p. 
57. 


Ex.  48,  p. 
56. 


23,  pa.  6. 

24,  pa.  6. 
40,  pa.  8. 


AUGUST    1.   188-. 

Shipped  Dow  &  Todd,  Lodi  (2d  shipment),  to  be  sold  on  my  account  and  risk,  1000  bu.  Barley, 
@  90c.     Paid  cartage  and  insurance  in  cash,  25.00. 

3. 
Bo't  for  cash,  3000  bu.  White  Oats,  @  520. 

4. 
Eec'd  from  J.  B.  Clark,  Clyde  (3d  consignment),  to  be  sold  on  his  account  and  risk,  400  bu. 
Beans.     Paid  freight  in  cash,  30.00, 

5. 
Sold  Niles  &  Kinnie,  800  bu.  Corn  (Morey  &  Co.'s  Con.  No.  1),  @  65c.     Rec'd  cash,  120.00. 
Balance  on  '^c. 

3? 

Closed  Morey  &  Co.'s  Con.  No.  1,  and  rendered  an  Account  Sales.  Storage,  8.00;  Commission, 
2  ^  on  sales,  10.40.     Morey  &  Co.'s  net  proceeds  placed  to  their  credit.     (See  note  below.) 

6. 

Bo't  of  0.  B.  Delano,  on  my  note  at  60  days,  2500  bu.  Barley,  @  90c. 

Rec'd  from  M.  &  D.  Fisher,  Easton,  an  Account  Sales  of  shipment  made  them  July  25th.  Net 
proceeds  remitted  in  cash,  2258.85. 

8. 
Drew  a  sight  draft  on  J.  D.  Mason,  Richfield,  600.00,  and  jiaid  it  to  J.  C.  King,  in  full  of  "jc. 

Rec'd  from  Benj.  Beebe,  Northport,  to  be  sold  on  his  account  and  risk,  1000  bu.  Corn.  (Mem- 
orandum only.) 

Sold  R.  G.  Laidlaw,  on  "jc,  at  15  days,  from  Clark's  Con.  No.  3,  100  bu.  Beans,  @  3.25. 

12. 

Shipped  to  E.  B.  Worden,  New  London,  to  be  sold  on  my  accoiint  and  risk,  1000  bu.  Mixed 
Oats,  @  40c.     Paid  cartage  and  insurance  in  cash,  17.50. 

13. 
Re-shipped,  as  per  instructions  received  from  J.  B.  Clark,  to  be  sold  on  his  account  and  risk, 
the  100  bu.  R.  Wheat  belonging  to  Clark's  Con.  No.  2,  to  R.  D.  White,  Smithport.     Paid      . 
Cartage  in  cash,  2.00. 

14. 

Closed  J.  B.  Clark's  Con.  No.  3,  and  rendered  an  Account  Sales.  Storage,  6.00;  Commission, 
2  ^  on  sales.  Clark's  net  proceeds  remitted  to  him  in  cash.  (See  also  explanation  under 
Ex.  54.) 


Paid  my  acceptance  of  July  37th  in  cash. 


16. 


Bo't  of  D.  Woods,  2000  bu.  Mixed  Oats,  @  48c.     Paid  him  cash,  460.00,  and  gave  him  my 
note  at  10  days,  with  interest,  for  balance. 

17. 
Sold  for  cash,  from  Beebe's  Con.  No.  1,  300  bu.  Corn,  @  68c. 

J? 

Rec'd  of  Niles  &  Kinnie,  their  note  at  30  days,  with  interest,  to  balance  f^,  400.00.     Rcmitteo 
the  note  to  Morey  &  Co.,  together  with  cash  to  balance  their  "/c. 

18, 
Sold  Milton  Forbes,  on  his  note  at  30  days,  500  bu.  Mixed  Oats,  @  53c.;  1000  bu.  White  Oats, 
@  56c. 

Rec'd  from  W.  J.  Corning,  Waterloo  (2d  consignment),  to  be  /iold  on  his  account  and  lisb;, 
3500  bu.  W^hite  Wheat.     Paid  Freight  in  cash,  280.00. 
Note.— In  finding  the  Net  Proceeds,  you  must  remember  to  deduct  from  the  sales  the  freight,  or  any  other  charges 
previously  paid  on  the  consignment,  as  well  as  the  charges  given  above.     For  illustration,  see  Example  54,  on  page  57, 
together  with  the  explanation  given  below  it. 


fi2 


THEORETICAL    AND    PRACTICAL    BUUKKEEPING. 


20R,  p.  55 


203,  p.  55. 


203,  p.  55. 


194  p.  55. 


193,  p.  .05. 
196,  p  55. 


19. 

Sold  Jno.  D.  Mason,  on  %  from  Clark's  Con.  No.  3,  300  bu.  Beans,  @  3.25. 

Closed  Clark's  Con.  No.  3,  and  rendered  an  Account  Sales.     Storage,  8.00;  Commission,  3  ■; 
on  sales.     J.  B.  Clark's  net  proceeds  placed  to  his  credit. 

21. 
Paid  my  note  of  July  24,  and  interest,  due  to-day,  in  cash. 

>? 

Dow  &  Todd,  Lodi,  i)er  my  instructions,  have  re-shipped  to  Wells  Bro's,  Carlisle,  to  be  sold  on 
my  account  and  risk,  1000  bu.  Barley,  shipped  them  1st  inst. 

22. 
Sold  for  cash,  from  Coming's  Con.  No.  3,  150  bu.  White  Wheat,  @  1.45. 


Rec'd  cash  of  R.  G.  Laidlaw,  for  his  note  of  July  30th  and  interest. 

23. 
Sold  for  cash,  from  Beebe's  Con.  No.  1,  700  bu.  Com,  @  68c. 


Closed  Beebe's  Con.  No.  1,  and  rendered  an  Account  Sales.     Storage,  at  Ic.  per  bu. ;  Commis- 
sion, at  2  ^  on  sales.     Benj.  Beebe's  net  proceeds  remitted  in  cash. 

24. 
Rec'd  cash  of  R.  G.  Laidlaw,  in  full  of  <^c,  325.00,  and  remitted  same  to  J.  B.  Clark,  on  afc. 

Rec'd  from  E.  B.  Worden,  New  London,  an  Account  Sales  of  shipment  made  him  12th  inst. 
My  net  proceeds  remitted  in  cash,  485.80. 

25. 
Shipped  to  Frank  Odell,  Lisbon,  to  be  sold  on  my  account  and  risk,  1500  bu.  Barley,  @  90c. 
Paid  cartage  and  insurance  in  cash,  18.38. 

Rec'd  cash  of  Jno.  D.  Mason,  on  <^,  1035.00. 

26. 

Rec'd  from  Morey  &  Co.,  Richmond  (3d  consignment),  to  be  sold  on  their  account  and  risk, 
1000  bu.  Com.     Paid  Freight  in  cash,  75.00. 


Paid  W.  J.  Corning,  cash  to  balance  "fe. 


27. 


Shipped  to  M.  &  D.  Fisher,  Easton  (2d  shipment),  to  be  sold  on  my  account  and  risk,  1000  bu. 
M.  Oats,  @  48c.     Paid  cartage  in  cash,  5.00. 


Sold  J.  T).  Mason,  1000  bu.  White  Oats,  @  55c.;  500  bu.  Barley,  @  1.00.     Rec'd  cash,  250.00, 
and  his  note  at  20  days  for  balance. 

28. 
Milton  Forbes  prepaid  his  note  of  18th  inst.     Face  of  note,  835.00;  discount  fb  maturity. 
Rec'd  cash  for  the  ])roceeds. 

29. 
Faid  my  note  of  16th  inst,  ^nd  interest,  due  to-day,  in  cash. 


THEOKEl'lCAL    AND    PRACTICAL    BOOK-KEEPING. 


S3 


194.  p.  55. 


29. 

Rec'd  advice  from  M.  &  T).  Eisher,  Easton,  that  the  1000  bu.  M.  Oats  sliippcrt  them  37th  inst. 
were  destroyed  by  fire  while  in  transit.     No  insurance. 


23,  pa.  6. 
40,  pa.  6. 
194,  p.  55. 


Sold  R.  G.  Laidlaw,  on  %  from  Morey  &  Co.'s  Con.  No.  2,  600  bu.  Corn,  @  70c. 

30. 
Rec'd  from  Wells  Bro's,  Carlisle,  an  Account  Sales  of  the  shipment  made  them  on  our  account 
by  Dow  &  Todd.     Our  net  proceeds,  894.25,  remitted  by  their  sight  draft  on  J.  B.  Clark, 
which  we  have  paid  to  Clark,  together  with  cash  to  balance  his  % 

Rec'd  from  Grant  &  Son,  Salem,  to  be  sold  on  their  account  and  risk,  500  bu.  R.  Wheat.     Paid 
Freight  in  cash,  30.00. 

Rec'd  cash  of  Jno.  P.  Mason,  in  full  of  "fc. 

Sold  for  cash,  from  Grant  &  Son's  Con.  No.  1,  200  bu.  R.  Wheat,  @  1.35. 

Paid  Rent  of  Warehouse  for  month  in  cash,  50.00. 


INVENTORIES,  AUGUST  31,  188-. 

MDSE.— 500   bu.  Mixed   Oats,  @    48c.;    1000   bu.  White   Oats,  @    52c.;    500   bu.  Barley, 

(oj  90c.     Total, -     1210  00 

SHIPMENT  to  Lisbon  No.  1,  at  cost, -..- 1368  38 

Note. — Journalize  and  post.  Give  new  accounts  one-fourth  of  a  page  space.  After  posting  the  month  of  August, 
make  out  a  Balance  Slieet  and  close  the  Ledger.  Bring  down  the  Resources  jind  Liabilities,  and  prove  your  work.  If 
correct,  it  will  agree  with  the  following: 


TRIAL  BALANCE  OF  LEDGER  BALANCES,  AUGUST  31,  188- 


RESOURCES 

Cash, - _  5050  12 

Mdse.  Inv _ 1210  00 

Bills  Receivable, 800  00 

Personal  Accounts, 420  00 

Coming's  Con.  No.  2, _ .  62  50 

Ship't  to  Lisbon  No.  1,  Inv. 1368  38 


8911  00 


LIABILITIES. 

Bills  Payable, _.     2250  00 

Morey  &  Co.'s  Con.  No.  2, 345  00 

Grant  &  Son's  Con.  No.  1, 240  00 

Student's  Investment, 6250  00 

Net  Loss, 174  00 


Present  Worth, 6076  00 


8911  00 


QUESTIONS  FOR  REVIEW. 

Page  55. — "*"'"  Give  the  rule  for  journalizing  Shipments.  '"  Explain  the  meaning  of  shipment. 
"'How  are  the  the  different  shipments  distinguished?  "'What  is  the  party  called  who  ships  the 
property?  "*  What  is  meant  by  Account  Sales?  '"By  Net  Proceeds?  «»  What  will  the  Shipment 
account  show  after  it  has  been  credited  with  the  net  proceeds?  '"'  What  before?  ™'"*''  Give  tlic  rule 
for  journalizing  Consignments?  *"  Explain  the  meaning  of  Consignment.  ^^  How  are  the  different 
consignments  distinguished?  ""  What  is  the  party  called  who  receives  the  property?  '"'  When  should 
a  Consignment  balance?  *"""*  What  would  a  Consignment  show  if  it  were  unclosed  at  the  time  of 
making  a  Balance  Sheet? 


64 


THEOKPrriGAL    AND    PRACTICAL    BOOK-KEEPING. 


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STUDENT. 

■ 

188 
Sept. 

1 

Cash, 

2 

1000 

WM.  T.   HOWARD. 

188 
Sept. 

17 

Oasli, 

3 

50 

188 
Sept. 

1 

Cash, 

2 

1000 

MERCHANDISE 

188 
Sept. 

2 
5 

Howe  &  Eogers, 
James  Reed  &  Co., 

1 
1 

1030 

700 

188 
Sept. 

3 

H.  W.  Smith, 

1 

300 

HOWE  &.  ROGERS 

188 
Sept. 

4 

Cash, 

o 

100 

188 
Sept. 

2 

Mdse. 

1 

1030 

^ 

THKORBTICAL    AND    PRACTICAL    15(K)K  KEEPING. 


65 


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188 
Sept. 

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1 

300 

1    188 
Sept. 

6 
9 

Cash, 
Bins  Eec. 

2 
1 

150 
150 

- 

EXPENSE. 

188 
Sept. 

10 

Cash, 

3 

25 

BILLS  RECEIVABLE. 

]88 
Sept. 

9 

H.  W.  Smith, 

1 

150 

•  i 

188 
Sept. 

22 

Cash, 

2 

150 

CASH. 

188 
Sept.  30 

Sundries, 

2 

3030 

54 

188 
Sept. 

30 

Sundries, 

3 

1520 

6r, 


THEOKETICAL    AND    PRACTICAL    BOOK-KEEPING. 


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THEORETICAL    AND    PRACTICAL    BOOKKEEPING.  67 

SEPTEMBER   1,   188-.     (See   Notes   1    and   2  at  bottom   of  page.) 

Student  and  Wm.  T.  Howard  have  this  day  formed  a  co-partnership,  under  the  firm  name  of 
Student  &  Co.,  for  the  purpose  of  conducting  the  Carpet  business.  The  partners  are  to  invest  equal 
amounts,  and  sliure  equally  in  gains  and  losses. 

In  consideration  of  extra  services.  Student  is  to  be  paid  by  the  firm  a  salary  of  one  hundred  dollars 
per  month.  * 

Note. — Make  a  memorandum  of  the  above  in  your  .Tournal. 

Student  and  Wm.  T.  Howard  have  each  paid  in  1000.00  cash,  the  amount  to  be  invested  as  stip- 
ulated in  the  co-jwrtnership  articles  this  day  executed.     (C.  B. ) 

Note. — Make  these  entries  on  the  left  side  of  tlie  Cash  Book,  wliich  debits  Cash  and  credits  Student  and  Wm. 
T.  Howard. 

In  opening  your  Cash  Book,  leave  the  first  page  blank  and  commence  on  the  second  page,  so  that  the  receipts  and 
disbursements  will  appear  on  opposite  pages.     See  Cash  Book  form  on  pages  64  and  65. 

2. 

Bought  of  Howe  &  Eogers,  New  York,  on  °/c,  200  yds.  Moquettes,  @  1.50;  300  yds.  Body  Brus- 
sels, @  1.35;  500  yds.  Ingrain,  @  65c.     (J.) 

3. 
Sold  H.  W.  Smith,  ou  <^,  200  yds.  Body  Brussels  @  1.50.     (J.) 

4. 

Paid  Howe  &  Rogers,  cash  to  apply  on  «/•,  100.00.      (C.  B.) 

Note. — Make  this  entry  on  the  right  side  of  the  Cash  Book,  which  credits  Cash  and  debits  Howe  &  Rogers.  See 
Cash  Book,  on  page  6.5. 

5. 

Bought  of  Jas.  Reed  &  Co.,  Boston,  on  "fc,  500  yds.  Tapestry  Brussels,  @  90c.;  1000  yds.  Matting, 
@  25c.      (J.) 

6. 

Received  cash  of  II.  W.  Smith,  on  o/r,  150.00.      (C.  B.) 
Note.— Make  this  entry  on  the  left  side  of  the  Cash  Book. 

8. 
Sold  Geo.  R.  Strong,  on  "/c,  200  yds.  Tapestry  Brussels,  @  1.00.     (J.) 

9. 

Received  of  H.  W.  Smith,  to  balance  «/«,  his  note  at  10  days,  payable  at  Traders  Bank,  150.00. 
(J.  and  B.  B.) 

Note.— Make  entry  also  in  Bill  Book.     See  form  of  B.  B.  on  page  66;  also,  note  No.  2  below. 

10. 
Paid  Scran  torn  &  Co.'s  bill  for  Office  Books  in  cash,  25.00.     (C.  B.) 
Note. — Make  the  entry  on  the  right  side  of  the  Cash  Book,  which  credits  Cash  and  debits  Expense. 

Note  No.  1 . — In  this  set  a  Cash  Book  (see  form  on  pages  64  and  65)  is  to  be  kept  as  a  principal  book,  that  is,  all  cash 
entries  are  to  be  made  in  the  Cash  Book  and  posted  directly  from  that  book  to  the  Ledger  witliout  being  carried  to  the 
Journal.  Whenever  cash  is  received,  enter  the  amount  on  the  left  or  debit  side  of  the  Cash  Book,  giving  the  title  of  the 
account  to  be  credited  in  posting,  and  an  appropriate  explanation;  whenever  cash  is  paid  out,  enter  the  amount  on  the 
right,  or  credit  side  of  the  Cash  Book,  giving  the  title  of  the  account  to  be  debited  in  posting,  and  an  appropriate 
explanation.  The  diiTerence  between  the  sides  of  the  Cash  Book  should  exhibit  at  any  time  the  cash  on  hand.  In 
business  it  is  customary  to  prove  the  cash  every  day,  that  is,  ascertain  whether  the  cash  on  hand  agrees  with  the  balance 
as  shown  by  the  Cash  Book. 

Note  No.  2.— An  auxiliary  book,  called  the  Bill  Book,  is  also  to  be  kept,  to  show  the  particulars  regarding  the 
Bills  Payable  and  Bills  Receivable  wliich  you  issue  and  receive.  The  form  shown  on  page  66  is  arranged  for  both 
notes  and  drafts.  The  Drawer  of  a  draft  and  the  Endorstjr  of  a  note  sustain  substantially  the  same  relation  to  the 
paper;  both  are  therefore  entered  in  one  cnlumn.  The  same  is  true  also  of  the  Drawee  of  a  draft  and  the  Maker  of  a 
note.  Three  days  of  grace  are  always  to  be  added  in  giving  the  maturity  of  paper.  As  soon  as  you  have  made  an 
entry  in  the  Journal  for  a  Bills  Payable  issued  or  Bills  Receivable  received,  turn  at  once  to  the  Bill  Book  and  enter  it 
there  also.    When  a"Bill  has  been  paid,  or  disposed  of  in  any  manner,  state  the  fact  in  the  proper  column  in  the  Bill  Book, 


68  THEORETICAL   AND    PRACTICAL    BOOKKEEPING. 

11. 
Gave  Howe  &  Rogers  our  note  at  30  days,  payable  at  our  office,  to  apply  on  %  200.00.  (J  and  B.  B. ) 

12. 
Received  casli  of  Geo.  R.  Strong,  on  %  .50.00.     (C.  B.) 

i3. 
Sold  Perry  &  Powers,  on  «jc,  100  yds.  Moquettes,  @  1.75;  200  yds.  Matting,  @  30c.     (J.) 

15. 
Paid  Jas.  Reed  &  Co.,  Gash  on  f^c,  2J0.00.     (0.  B.) 

16. 
Sold  Wm.  (Graves,  on  his  note  at  10  days,  payable  at  Farmers  Bank,  with  interest,  100  yds.  Body 
Brussels,  @  1.50;  100  yds.  Tajjestry  Brussels,  @  1.00.     (J.  and  B.  B.) 

17. 
Wni.  T.  Howard  drew  cash  from  the  business  for  private  use,  50.00.     (C.  B.) 

18. 
Sold  for  cash,  100  yds.  Matting,  @  30c.     (C.  B.) 
Note.— Make  entry  on  Uft  side  of  Cash  Book,  which  debits  Cash  and  credits  Merchandise. 

19. 
Accepted  Jas.  Reed  &  Co.'s  (Boston),  draft  on  us,  favor  O.  D.  Harris,  at  3  days'  sight,  payable  at 
our  office,  to  apply  on  "fc,  300.00.     (,T.  and  B.  B.) 

20, 
Received  cash  of  Geo.  R.  Strong,  in  full  of  "jc,  150.00. 

Sold  Gardner  &  Son,  100  yds.  Tapestry  Brussels,  @  1.00;  300  yds.    Matting,  @  30c.     Received 
cash,  75.00.     Balance  on  <^.     (J.  and  C.  B.) 

Note.— Debit  Gardner  &  Son  with  the  full  amount  of  the  invoice  in  the  Journal  and  credit  them  in  the  Cash  Book 
for  the  amount  paid.    • 

22. 

Received  cash  of  H.  W.  Smith,  for  his  note  of  9th  inst.,  due  to-day,  150.00.     (U.  B.) 
Note. — Mark  the  note  paid  in  B.  B. 

23. 

Bought  of  Howo  &  Rogers,  on  "jc,  400  yds.  Body  Brussels,  @  1.35;  300  yds.  Moquettes,  @  1.50. 

24. 
Paid  cash  for  Coal  for  use  in  store,  15.00. 

a 

Sold  Geo.  R.    Strong,  on  %  300  yds.  Ingrain,  @  75c.;   200  yds.  Moquettes,  @  1.75;    100  yds. 
Tapestry  Brussels,  @  1.00.  ^ 

25. 
Paid  our  acceptance  of  19th  inst.,  favor  0.  D.  Harris,  due  to-day,  in  cash.     (C.  B.) 

26. 
Received  of  Perry  &  Powers,  their  note  at  60  days,  indorsed  by  Henry  T.  French,  payable  at  Fourth 
National  Bank,  in  full  for  invoice  13th  inst.,  235.00. 

27 
Paid  Howe  &  Rogers,  cash  on  <y«,  730.00. 

*  it 

Sold  H.   W.    Smith,   100  yds.   Moquettes,  @  1.75;   200  yds.   Body  Brussels,   @  1.50.     Received 
cash,  175.00.     Balance  on  "jc. 

29. 

Received  cash  of  Wm.  Graves,  for  his  note  of  16th  inst.,  duo  to-day,  250.00,  and  13  days  interest  on 
same,  54c.     (See  note  ))elow.) 

Note. — For  tlie  purpose  of  illustrating  both  methods  of  computing  interest  and  discount,  the  one  in  general  use  in 
business  will  hereafter  be  employed,  viz:  360  days,  or  12  months  of  30  days  each,  will  be  considered  a  year,  and  taken 
as  a  basis  of  computation.  The  Student  is  recommended  to  use  the  6  per  cent,  or  short  method  of  working  interest 
and  discount. 


THEORETICAL   AND   PRACTICAL   BOOK-KEEPING.  69 

30. 
Gav{3  Jas.  Reed  &  Co.  our  note  at  10  days,  with  interest,  payable  at  our  office,  to  balance  "fc,  200.00. 

ii 

}*ai(l (Student),  his  salary  for  extra  services  for  month,  in  cash,  100.00. 

INVENTORIES,  SEPTEMBER  30,   188-. 

RESOURCE. 
Musk. — Goods  in  stock,  j)pr  Inventory  Book, .. 650  00 

LIABILITY. 
Expense. — Rent  unpaid  for  month  of  September, 100  00 

,  You  ■v\-ill  now  balance  your  Cash  Book  (see  Cash  Book  form  on  yiages  64  and  65),  post,  make 
balance  sheet,  and  close  the  accounts,  showing  losses  and  gains. 

Post  from  the  Journal,  as  heretofore,  entering  the  explanations  in  the  Ledger  accounts,  using  for 
explanation  the  opposite  title  in  the  Journal  entry  when  there  is  but  one,  and  the  expression  "Sundries  " 
when  there  is  more  than  one,-  as  illustrated  on  pages  64  and  65.  Check  the  posting  in  Journal  and 
Cash  Book,  by  using  the  Ledger  page  instead  of  the  check  mark  as  heretofore.  Give  Merchandise, 
Bills  Receivable  and  Bills  Payable,  each  one-half  of  a  page  space;  all  other  accounts,  one-fourth  of  a 
page  each. 

In  posting  from  the  Cash  Book,  credit  all  items  on  the  left  side  to  the  various  accounts  to  whicli 
they  belong,  and  deiit  Cash  account  with  the  footing  of  these  items.  To  illustrate:  credit  Student 
1000;  credit  Wm.  T.  Howard,  1000;  credit  H.  W.  Smith,  150;  and  so  on  until  all  of  the  items  on 
the  left  side  of  the  Cash  Book  have  been  credited;  then  debit  Cash  account  with  the  footing  of  these 
items,  3030.54.  Next  debit  all  items  on  the  right  side  of  the  Cash  Book,  and  credit  Cash  with  the 
footing  of  these,  items.  To  illustrate:  debit  Howe  &  Rogers,  100;  debit  Expense,  25;  debit  Jas.  Reed 
&  Co.,  200,  and  so  on  until  all  the  items  on  this  side  have  been  debited,  then  credit  Cash  account  with 
the  total,  1520.  As  will  readily  be  seen,  the  equality  of  the  sides  of  the  Ledger  is  thus  preserved. 
The  entries  should  be  posted  from  the  Journal  and  Cash  Book  in  the  order  of  the  dates,  to  have  them 
appear  in  the  proper  order  in  the  Ledger. 

After  the  posting  is  completed  your  Ledger  should  exhibit  the  following  balances: 

CREDIT  BALANCES. 
Student,  1000.00;  Howard,  950.00;  Howe  &  Rogers,  990.00;    Bills  Payable,  400.00;   Interest,  54c. 

DEBIT  BALANCES. 

Merchandise,  365.00;  H.  W.  Smith,  300.00;  Geo.  R.  Strong,  675.00;  Bills  Receivable,  235.00; 
Expense,  140.00;  Gardner  &  Son,  115.00;  Cash,  1510.54. 

NET  GAIN   FOR  THE  MONTH,  45.54. 

OCTOBER   1.   188-. 

Purchased  of  Wm.  T.  Howard,  his  interest  in  the  business  as  shown  by  his  present  worth.  Gave 
him  in  full  payment  my  note  at  2  mos.,  indorsed  by  C.  N.  Benton,  972.77. 

2. 
Sold  Samuel  Beach,  on  his  note  at  10  days,  with  interest,  payable  at  Merchants'  Bank,  100  yds. 
Body  Brussels,  @  1.50;  200  yds.  Matting,  @  30c.;  100  yds.  Moquettes,  @  1.75. 

3. 

Received  casli  of  H.  W.  Smith,  on  ajc,  100.00. 

4. 

Paid  note  favor  Howe  &  Rogers,  due  to-day,  in  cash. 

(t 

Bought  of  Jas.  Reed  &  Co.,  400  yds.  Tapestry,  @  90c.;  300  yds.  Moquettes,  <a  1.50;  1000  yds. 
Lining,  @  10c.     Paid  casli  on  above,  300.00.     Balance  on  "{c. 

Note. — Credit  Jas.  Reed  &  Co.  in  Journal  for  full  amount,  and  debit  them  in  Cash  Book  for  the  cash  paid. 


70  THEORETICAL   AND   PRACTICAL    BOOK-KEEPING. 

6. 
Gave  Howe  &  Rogers,  my  note  at  30  days,  to  apply  on  "jc,  500.00. 

7. 
Sold  II.  AY.  Smith,  on  "/r,  100  yds.  Moquettes,  @  1.75;  500  yds.  Lining,  @  13^0. 

8. 
Perry  &  Powers  prepaid  their  note  of  36th  ult.,  335.00,  in  cash,  less  discount  to  maturity,  51  days, 
3.00. 

Note. — On  the  left  side  of  the  Cash  Book  credit  Bills  Receivable  235.00,  which  debits  Cash  235.00,  and  on  the  right 
side  of  the  Cash  Book  debit  Discount,  2.00,  which  credits  Cash  2.00;  this  leaves  the  net  debit  to  Cash  the  difference 
between  the  two  amounts,  the  same  as  though  made  in  the  ordinary  Journal  entry  form. 

9.  . 

Received  of  Geo.  R.  Strong,  his  note  at  60  days,  payable  at  City  Bank,  in  full  of  "jc,  675.00. 

10. 
Received  cash  of  Gardner  &  Son,  on  "jc,  50.00. 

11. 
Sold  Perry  &  Powers,  on  «/c,  300  yds.  Tapestry  Brussels,  @  1.00;   100  yds.  Moquettes,    @   1.75; 
200  yds.  Lining,  @  12iSc. 

13. 

Paid  my  note,  favor  Jas.  Reed  &  Co.,  due  to-day,  and  interest  on  same,  in  cash. 

14. 
Bought  of  Clark,   Medford   &   Co.,  Philadelphia,   on  "jc,  3i)0  yds.  Moquettes,  @   1.50;    600  yds. 
Bodv  Brussels,  @  1.35. 

15. 

Received  cash  of  Samuel  Beach,  for  his  note  and  interest  due  to-day. 

16. 
Paid  Howe  &  Rogers,  cash  on  «/c,  490.00. 

17. 

Received  of  H.  W.  Smith,  his  note  at  10  days,  payable  at  Traders  Bank,  to  apply  on  <^,  200.00. 

18. 
Paid  rent  of  store  for  September  and  October,  in  cash,  200,00. 

20. 
Accepted  Jas.  Reed  &  Co.'s  draft  at  3  dajs'  siglit,  favor  0.  D.  Harris,  to  apply  on  ^c,  300.00. 

21, 
Sold  Richmond  &  Bro.,  on  «/c,  300  yds.  Body  Brussels,  @  1.50;  200  yds.  Ingrain,  @  75c. 

22. 
Received  cash  of  Gardner  &  Son,  in  full  of  "jc,  65.00. 

23. 
Geo.  R.  Strong  prepaid  his  note  of  9th  inst.,  in  cash,  less  discount. 

24. 
Sold  for  cash,  50  yds.  Body  Brussels,  @  1.50. 

25. 
Bought  of  Jas.  Reed  &  Co.,  on  °jc,  200  yds.  Moquettes,  @  1.50;  500  yds.  Tapestry  Brussels,  @  90c. 

26. 
Paid  acceptance,  favor  0.  I).  Harris,  due  to-day,  in,cash. 

28. 
Received  of  Richmond  &  Bro.   (Springville),  to  apply  on  «/«,  their  draft  in  my  favor,  at  30  days' 
sight,  on  Chas.  T.  Webber,  which  he  has  accepted,  payable  at  Corning  &  Co.'s  Bank,  300.00. 

29. 
Sold  Gardner  &  Son,  on  <^c,  350  yds.  Body  Brussels,  @   1.50;    200  yds.  Moquettes,  (S^  1.75;  200 
yds.  Matting,  @  30c. 


THEORETI(5AL    AND    PRACTICAL    BOOK-KEEPING, 


71 


29. 
Paid  Clark,  Med  ford  &  (~!o.,  casli  on  %:,  GOO.  00. 

30. 

Prepaid  my  note  fitli  inst,  favor  Howe  &  Rogers,  in  cash,  less  discount- 

T) 

Received  cash  of  H.  W.  Smith,  for  his  note  dno  to-day. 

31. 
Paid  clerk's  salaries  in  cash,  100.00. 

INVENTORY,  OCTOBER  31,  188-. 

MnsE. — Goods  in  stock  per  Inventory  Book, _ laCO  00 

You  may  now  balance  the  Cash  Book,  post,  make  out  balance  sheet,  and  close  the  Ledger. 
The  Summary  of  your  Balance  Sheet  should  agree  with  the  following: 

SUMMARY. 


Total   Gains, 332  90 

"       Losses, 206  76 


Net   Gain,__ 116  14 

Total  Resources, ,.. 3831  68 

"      Liabilities, ..3692  77 


Present  Worth, _ 1138  91 


Student's  Net  Credit, .1022  77 

"     Gain,. 116  14 


Present  Worth _.1138  91 


CHECK   BOOK.     (Nov.  and  Dec.) 


.A^ 

.   /,  ^c/,om/c</, 

No. 

/. 

Date,  ©^ 

■  4. 

To 

"wit:-a.-a.i 

^,@c      1 

For 

0//^. 

^/. 

Am't, 

4000 


.4^.    /■/,   ^e^Mty^/, 


No.^. 

Date,  (g^„. 

/J". 

- 

Toj^^. 

#■ 

xS^^frV****/-/ 

For  9f»i.«/- 

^/ 

Am't, 

225 
300 

407  5 


200 

38  7  5 

G.    (^  Qf^o.,Aa*i/^  300 

3  67  5 


No. 

^i 

Date,   g^.  /a. 

To 

^^ 

'Wa.-ytJ. 

For 

^W^«^»n^^ 

■#*   a.c 

Am't, 

200 

3  3  7  4 


50 

50 


No.  y. 
Pay  to 

^  ^^6.  00. 

Medina,  @^. 
FLOUR  CITY  BANK, 

OF  MEDINA. 

.^.«/^.«^-^,: 

^,  188^ 

or  Order, 
Dollars. 

// 

l^-U.cU-» 

/^  ^.. 

No.  .t 
Pay  to 

Medina,  (g^^.  /j,  188^ 
FLOUR  CITY  BANK, 

OF  MEDINA. 

j^«..    ^^I^/^^,                            or  Order, 

^Joo.oo.                                                    ..©Vtwi**//-  9;„. 

No.  ^ 


Medina,  @/;^.  ,/^.  188^ 


FLOUR  CITY  BANK, 

OF  MEDINA. 


Pay  to  ^i^/zT  f'^ooj  «««/  (^L/'L,^e  /^SOr.J             or  Order, 
SL^  ^^^^/.r/  tVs Dollars. 


n 


THKORETICAL    AND    PRACTICAL   BOOKKEEPING. 


SALES  BOOK. 

NOVEMBER  2,  188- 


L.  F. 

3 

E.  Langworthy,  Marcellus. 

2  doz.  Carpeh  Stretchers, 
10  Grindstones, 

3. 

2.50 

G 
25 

2  doz.  C.  S.  Angers, 

7.25 

14 

50 

25  Kegs  Cut  Nails,  2500  lbs.. 

4c. 

100 

145 

50 

3 

L.  B.  Mason,  City. 

3  U.  Clothes  Wringers, 

6.25 

18 

75 

5  Grindstones, 

2.50 

12 

50 

1  doz.  Steelyards, 

5. 
Barber  &  Swift,  Georgetown. 

10.50 

10 

50 

41 

75 

4 

10  B.  Drills, 

7.25 

73 

50 

5  doz.  P.  G.  Coal  Hods, 

15. 

75 

2    "     C.  S.  Augers, 

7.25 

14 

50 

3    "     W.  Wrenches, 

14.75 

44 

25 

7    "     Carpet  Stretchers, 

3.00 

21 

227 

25 

4 

6 
C.  B.  Shafer,  Gasport. 

10  Kegs  Cut  Nails,  1000  lbs.. 

4c. 

'      40 

2  U.  Clothes  Wringers, 

6.25 

12 

50 

3  doz.  C.  S.  Augers, 

7.25 

21 

75 

7    "     Carpet  Stretchers, 

3. 

21 

2    "     W.  AVrenchcs, 

'       14.75 

29 

50 

10  "     C.  S.  Axes, 

15. 

150 

274 

75 

11. 

3 

E.  Langworthy. 

10  Grindstones, 

2.50 

25 

3  U.  Clothes  Wringers, 

6.25 

18 

75 

5  doz.  Carjjet  Stretchers, 

3. 

15 

58 

75 

13. 

3 

L.  B.  Mason. 

8  doz.  Carpet  Stretchers, 

10  Kegs  Cut  Nails,  1000  lbs., 

4  doz.  C.  S.  Augers, 

3. 

4c. 

7.25 

24 
40 
29 

10  "     C.  S.  Axes, 

15. 

150 

243 

4 

C.  B.  Shafer. 

30  Kegs  Cut  Nails,  3000  lbs., 
5  doz.  P.  G.  Coal  Hods, 

4c. 
15. 

120 

75 

5  B.  Drills, 

Forward, 

7.25 

36 

25 

231 

25 

1222 

25 

1 

PRICE 

LISTS  FOR 

NOVEMBER  AND  DECEMBER. 

BuyinK^. 

Selling. 

7.25 

Buylnsr. 

Selliner. 

6.00 

Blacksmith  Drills, 

each, 

4.75 

Copying  Presses, 

each. 

6.00 

12^0. 

Babbit  Metal, 

per  lb. 

15c. 

1.60 

Grindstones, 

each. 

2.50 

2.00 

Barn  Door  Hangers, 

per  pair, 

2.75 

7.50 

Ice  Cn^am  Freezers, 

each, 

9.50 

3*c. 

Cut  Nails, 

per  lb. 

4c. 

12.25 

Plain  Galv'd  Coal  Hods, 

per  doz. 

15.00 

5.50 

Cast  Steel  Augers, 

per  doz. 

7.25  i 

85c. 

R.  H.   Bread  Knives, 

it 

1.50 

2.40 

Carpet  Stretchers, 

per  doz. 

3.00 

8.00 

Steelyards, 

tt 

10.50 

8.10 

Cow  Bells, 

per  doz. 

9.50 

5.00 

Universal  Clothes  Wring( 

;rs,  each. 

6.25 

12.00 

Cast  Steel  Axes, 

per  doz. 

15.00  1 

12.75 

Wrought  Wrenches, 

per  doz. 

14.75 

Note  to  the  Teacher.— If  desired,  the  months  of  Nov.  and  Dec.  may  be  used  as  a  primary  business  practice 
set,  employing  representative  currency,  writing  all  business  papers  and  documents,  and  actually  performing  the  business 
connected  with  the  transactions  as  outlined  in  the  memoranda.  To  secure  independent  work,  a  special  discount  upon 
the  above  lists,  either  in  buying  or  selling,  or  both,  may  he  assigned  to  each  pupil,  thus  producing  results  unlike  those 
of  other  pupils. 


Theoretical  anI)  practical  book-keeping.  7S 

NOVEMBER  I,  188— 

Student  and  Geo.  D.  Whitney  liiive  this  day  formed  a  co-partnership,  under  the  firm  name  of 
Student  &  Co.,  and  have  leased  of  H.  N.  Smith  the  store  No.  1466  Main  Street,  at  1200.00  per  year, 
for  the  purpose  of  carrying  on  the  Hardware  business. 

Geo.  I).  Whitney  is  to  furnish  a  cash  capital  of  5000.00,  and  Student  is  to  conduct  the  business. 
The  gains  and  losses  are  to  be  shared  equally. 

Receive  of  Geo.  D.  Whitney  the  5000.00  cash  investment  as  per  co-partnership  agreement.    (C.  B.) 

Open  an  account  at  Flour  City  Bank,  and  deposit  cash,  4000.00.     (Ck.  B.     See  note  No.2  below.) 
Note.— Make  this  entry  only  in  the  Check  Book.     See  form  of  Check  Book  on  page  71.     In  case  the  pupil  is  not 
provided  with  a  Check  Book,  the  record  for  the  stub  may  be  kept  upon  a  sheet  of  paper  properly  ruled. 

Buy  of  Hemingway  &  Selden,  City,  on  "^,  75  kegs  Out  Nails,  7500  lbs.;  50  Grindstones;  10  doz. 
0.  S.  Augers;  48  U.  0.  Wringers;  5  doz.  Steelyards;  35  doz.  Carpet  Stretchers.     (J.) 

2 
Sell  E.  Langworthy,  Marcellus,  on  «/c,  3  doz.   Carpet  Stretchers;    10  Grindstones;   2  doz.   0.  S. 
Augers;  25  kegs  Cut  Nails,  3500  lbs.     (S.  B.) 

Note. — Make  this  entry  only  in  the  Sales  Book,  as  explained  in  Note  No.  1  below. 

Order  by  letter,  of  E.  Corning  &  Co.,  Albany,  on  "jc,  the  following  goods,  to  be  shipped  via  N.  Y. 
C.  &  n.  R.  R.  R.:  25  B.  Drills;  25  doz.  P.  G.  Coal  Hods;  10  doz.  Carpet  Stretchers;  5  doz.  C.  S. 
Augers;  20  doz.  C.  S.  Axes;  5  doz.  W.  Wrenches.     (Memorandum.) 

Note. — Simply  write  the  letter,  ordering  the  goods  as  above.     No  entry  is  to  be  made  until  the  goods  are  received 

Give  Hemingway  &   Selden,  to  ,apply  on  "jc,  your  note  at  15  days,  payable  at  F.  C.  Bank,  with 

interest,  500.00.     (J.  and  B.  B.) 

J) 

Sell  L.  B.  Mason,  City,  on  o/c,  3  U.  C.  Wringers;  5  Grindstones;  1  doz.  Steelyards.     (S.  B.) 

4. 

Buy  of  Briggs  &  Son,  a  Safe  for  the  office,  and  pay  for  same  by  check  on  P.  C.  Bank,  235.00. 
(Ck.  B.'andC.  B.) 

5. 
Receive  the  goods  ordered  of  Corning  &  Co.,  2nd  inst.     (J.) 

Sell  Barber  &  Swift,  Georgetown,  on  "jc,  10  B.  Drills;  5  doz.  P.  G.  Coal  Hods;  3  doz.  C.  S. 
Augers;  3  doz.  W.  Wrenches;  7  doz.  C.  Stretchers.     (S.  B.) 

Note  No.  1. — In  addition  to  the  Journal  and  Cash  Book,  a  Sales  Book  is  to  be  kept  in  this  set,  as  a  principal 
book,  all  sales  of  merchandise  being  entered  in  the  Sales  Book  only. 

In  posting  from  the  Sales  Book,  each  person  is  to  bo  debited  with  the  amount  of  his  invoice,  and  Merchandise 
account  is  to  be  credited  with  the  total  sales  at  the  end  of  the  month.     (See  form  of  Sales  Book  on  page  72.) 

The  use  of  the  Bill  Book  as  an  auxiliary  book  is  to  be  continued. 
Note    No.   2.— In   this  set,   the    bank    account   is   not    to    be   kept    in    the  Ledger,    but  upon  the  stub  of  the 
Check  Book,  and  money  in  the  bank  is  to  be  treated  as  cash  on  hand. 

When  moaey  is  deposited,  therefore,  an  entry  is  not  to  be  made  in  the  Cash  Book,  only  in  the  Check  Book,  adding 
the  amount  of  the  deposit  to  the  previous  balance. 

When  money  is  paid  out  by  check,  however,  the  amount  is  not  only  to  be  deducted  from  the  previous  balance  in 
the  Check  Book,  but  an  entry  must  also  be  made  in  the  Cash  Book,  because  our  cash  (or  its  equivalent,  our  bank 
balance)  has  been  reduced.     See  form  of  Check  Book  on  page  71. 

Note  No.  3  —All  of  the  business  papers  in  this  set,  such  as  invoices,  letters,  telegrams,  notes,  checks,  dei>osit 
tickets,  drafts,  receipts,  orders,  etc.,  should  be  written  by  the  pupil,  as  he  comes  to  them,  in  the  memoranda. 
Specimens  of  these  forms  will  be  found  on  the  last  pages  of  the  text  book. 


74  TIlKOKKTIOAIi    AND    I'KACi'lOA'L    JJOOKKEEPING. 

6. 
Receive  of  E.    Langwortliy,   to  apply  on  "]c,   his  note  at  20  days,  payable  at  Commercial  Bank, 
Marcellus,  100.00.     Leave  the  note  at  F.  0.  Bank,  for  collection.     (J.  and  B.  B.) 

Note.— In  the  Remarks  column  in  B.  B.  make  the  following  memorandum:  "Left  at  F.  0.  Bank  for  collection," 
and  give  the  date  when  left. 

Order  by  telegram,  of  Pratt,  Conway  &  Mills,  Pittsburg,  200  kegs  Cut  Nails,  20,000  lbs.,  to  be 
shipped  via  AV.  B.  &  P.  \l.  R.     (Memorandum.) 

Receive  Casli  of  L.  B.  Mason,  in  full  for  invoice  2d  inst.     (C.  B.) 

Sell  C.  B.  Shafer,  Gasport,  on  «/c,  10  Kegs  Cut  Nails,  1000  lbs.;  2  U.  C.  Wringers;  3  doz.  C.  S. 
Augers;  7  doz.  Carpet  Stretchers;  2  doz.  W.  Wrenches;  10  doz.  C.  S.  Axes.     (S.B.) 

8- 
Pay  Hemingway  &  Selden,  cash  on  "jr,  100.00. 

9. 

Accept  E.  Corning  &  Co.'s  draft  at  3  days  sight,  favor  of  themselves,  payable  at  F.  C.  Bank,  to 
ap])]y  on  %  300.00.     (J.  &  B.  B.) 

10. 
Receive  cash  of  C.  B.  Shafer,  on  "jc,  200.00. 

11. 
Receive  of  Barber  &  Swift  tlieir  note  at  10  days,  payable  at  Farmers'  Bank,  Georgetown,  with 

interest  in  full  for  invoice  5th  inst.     Leave  the  note  at  F.  C.  Bank  for  collection. 

t 

Sell  E.  Langworthy,  on  "fc,  10  (Jrindstones;  3  U.  C.  Wringers;  5  doz.  C.  Stretchers. 

Deposit  in  F.  C.  Bank,  300.00.     (Ck.  B.) 

12. 
Receive  the  nails  ordered  of  Pratt,  Conway  &  Mills,  Gth  inst.     (J.) 

13 
Pay  cash  for  2  tons  of  Coal  for  office,  10.80. 

?? 

Geo.  D.  Whitney  draws  from  the  business,  for  his  individual  use,  by  check  on  F.  C.  Bank,  200.00. 

Note. — Charge  this  to  "Geo.  D.  Whitney,  Private  Account,"  and  open  such  an  account  in  the  Ledger  instead  of 
posting  it  to  his  investment  account. 

.*? 

Sell  L.  B.  Mason,  City,  8  doz.  C.  Stretchers;  10  kegs  Cut  Nails,  1,000  lbs.  ;  4  doz.  C.  S.  Augers, 
10  doz.  C.  S.  Axes.     Receive  cash  to  apply  on  above  43.00. 

Note. — Enter  the  sale  in  S.  B.  in  the  regular  way,  for  the  full  amount,  and  credit  Mason  in  C.  B.  for  the  cash 
received. 

Order  by  letter  of  Hart,  Bliven  &  Mead,  New  York,  to  be  shipped  via.  West  Shore  R.  R.,.12  I.  C. 
Freezers;  2,500  lbs.  Babbit  Metal;  20  doz.  Cow  Bells;  15  Copying  Presses;  100  pairs  Barn  Door 
Hangers;  75  doz.  R.  H.  Bread  Knives  (Memorandum). 

15. 
Receive  cash  of  E.  Langworthy  on  "jc  45.50. 

Your  acceptance  due  to-day  has  been  paid  by  F.  C.  Bank  and  charged  to  your  "jc. 

18. 
■  Sell  C.  B.  Shafer  on  %  30  kegs  Cut  Nails,  3,000  11)S.;  5  doz.  P.  G.  C.  Hods;  5  B.  Drills. 

Receive  the  goods  ordered  of  Hart  ]i.  &  M.,  13  inst. 


THEORETICAL    AND    PRACTICAL    BOOk-KEEPING.  75 

19. 
Buy  at  F.  C.  Bank  by  check,  a  New  York  draft  for  200.00  at  ^  •;{,  Exchange,  and  remit  it  by  letter 
to  E.  Corning  &  Co.  on  <yc.     (Ck.   B.  &  C.  B.) 

Note.— Debit  Corning&  Co.  200.00,  Excbange  50  cts.  in  C.  B.  and  deduct  200.50  in  (!k.  B. 

20. 
Your  note  with  interest  due  to-day  lias  been  paid  by  V.  C  Bank  and  oliarged  to  your  "fc. 

).♦ 
Pay  Hart,  Bliven  &   Mead's  sight  draft  on  you,  favor  themselves,  by  check  on  F.  C!.  Bank  500.00. 

j> 
Geo.  D.  Whitney  appropriates  for  his  individual  use,  at  cost  i)rice,  1  pair  B.  D.  Hangers;  1  Copying 
Press;  1  I.  C.  Freezer.     (S.  B.) 

Note. — Charge  this  to  "Geo.  D.  Whitney,  Private  Account." 

22. 
Sell  Barber  &  Swift  4  Copying  Presses  ;  25  kegs  Cut  Nails,  2,500  lbs.  ;  10  Grindstones  ;  5  doz.  C. 
Bells;  3  I.  C. Freezers;  1,500  lbs.  B.  Metal;  20  doz.  R.  H.  Bread  Knives.     Receive  Cash  on  above  120.50. 

Remit  by  letter  to  Pratt,  Conway  &  Mills  on  "jc  your  note  at  15  days  with  interest,  payable  at  F.  C. 

Bank,  300.00. 

25. 

Receive  credit  at  F.  C.  Bank  for  a  note  with  interest,  due  yesterday,  less  collection  ^  ^. 

Deposit  in  F.  C.  Bank  400.00. 

Pay  Daily  Tribune  Advertising  bill  in  cash  18.50. 

26. 
Pay  E.  Corning  &  Co.'s  sight  draft  on  you,  favor  themselves,  by  check  on  P.  C.  Bank,  100.00. 

n 

Receive  of  L.  B.  Mason  his  note  at  15  days  with  interest  100.00,  and  his  note  at  30  days  with 
interest  100.00,  payable  at  Trader's  Bank,  to  balance  "fc. 

Tl. 
Receive  cash  of  Barber  &  Swift  on  '^c,  100.00. 

Draw  a  sight  draft  on  C.  B.  Shafer,  Gasport,  150.00,  in  favor  of  F.  C  Bank  and  deposit  the  draft 
to  your  credit  less  collection  ^  ^. 

Note.— Credit  Shafer  150.00  debit  Collection  75  cts.  in  C.  B.  and  add  149.35  in  Ck.  B. 

29. 

Order  by  letter  of  E.  Corning  &  Co.  to  be  shipped  via.  N.  Y.  C.  &  H.  R.  R.  R.  20  doz.  W.  Wrenches; 
15  doz.  C.  S.  Augers;  25  doz.  C.  Stretchers;  30  B.  Drills;  25  doz.  C.  S.  Axes. 

Deposit  in  F.  C.  Bank  100.00. 

30. 
Receive  credit  at  F.  (3.  Bank  for  a  note  due  yesterday,  less  collection  \  %. 

Sell  L.  B.  Mason  on  "jc  2  doz.  C!.  Bells;  4  Copying  Presses;  25  kegs  Cut  Nails,  2,500  lbs.;  25  i)airs 
B.  D.  Hangers;  2  doz.  Steelyards;  5  doz.  P.  G.  C.  Hods. 

Give  Hemingway  &  Selden  check  on  F.  C.  Bank  in  full  of  "jr.  109.38. 


76  THEORETICAL    AND   PRACTICAL   BOOK-KEEPING. 

« 
30. 
Accept  Pratt,  ('onway  (S/Mills  draft  at  1  day  sight,  favor  H.  W.  Hardy,  payable  at  F.  V,.  Hank, 

200.00. 

J? 

Pay  li.  N.  Smith  rent  of  Store  one  month  by  check  on  F.  C.  Bank. 

J? 

Pay  Sundry  Freight  bills  for  the  month  in  cash,  46.35  (Charge  Mdse.  a(,.). 

INSTRUCTIONS. 

You  may  now  balance  the  Cash  Book,  foot  the  Sales  Book,  post  the  month's  business,  and  take 
a  trial  balance. 

To  balance  the  Cash  Book  it  will  require  the  cash  in  the^safe,  576.10,  and  the  cash  in  the  bank, 
3038.9?,  added  together,  this  sum  constituting  the  cash  on  hand,  as  explained  in  Note  No.  2,  page  73. 

Post  from  the  Cash  Book  and  Journal  the  same  as  in  Sept.  and  Oct. 

In  posting  from  the  Sales  Book,  debit  each  person  with  the  amount  of  his  invoice  and  credit 
Merchandise  with  the  total  sales,  as  shown  by  the  footing  of  the  last  column  of  the  Sales  Book.  This 
footing  should  be  $2014. 75. 

As  a  matter  of  convenience,  and  as  being  less  liable  to  make  errors,  you  may  first  post  all  of  the 
entries  from  the  Sales  Book;  then  post  all  entries  from  the  Journal;  and  last,  post  all  entries  from  the 
Cash  Book.  The  dates  will  not  in  all  cases  appear  in  proper  order  in  the  Lodger,  as  they  would  when 
the  books  are  kept  j)osted  every  day  as  they  are  in  business. 

The  initials  of  the  book  from  which  the  entry  is  posted  are  to  be  used  in  the  Ledger,  instead  of  a 
complete  explanation.  Thus,  if  the  entry  comes  from  the  Sales  Book,  enter  in  the  explanation  column, 
S.  B. ;  if  from  the  Cash  Book,  C.  B. ;  and  if  from  the  Journal,  J.  This  plan  will  materially  shorten 
the  work  of  posting  and  generally  meet  all  requirements. 

In  posting,  give  Bills  Receivable,  Bills  Payable,  Expense  and  Merchandise  each  one-half  a  page 
space,  and  give  all  other  accounts  one-fourth  page  each. 

After  completing  the  posting,  take  a  Trial  Balance,  using  the  differences  instead  of  the  footings 
of  the  accounts.     These  differences  should  be  .ts  follows: 

DEBITS. 
Merchandise,  1076.98;  Bills  Receivable,  200.00;   Expense,  354.30;  E.  Langworthy,  58.75;  L.  B. 
Mason,  307.75;   Barber  &  Swift,  250.00;    C.  B.   Shaf or,  156.00;   Geo.  D.  Whitney,  Private  Account, 
214.25;  Interest,  1.01;  Exchange,  50c;  Collection,  2.39;  Cash,  3614.07. 

CREDITS. 
Geo.  B.  Whitney,  5000.00;  Bills  Payable,  500.00;  Pratt,  C.  &  M.,  125.00;  Hart,  B.  &  M.,  399.50; 
E.  Corning  &  Co.,  211.. 50. 

DECEMBER  1,  IBS—. 
Receive   of   Barber   &    Swift,  Georgetown,  to  balance  account,  their  draft,    in  your  favor,  at   3 
days  sight,  on  E.  R.  Andrews,  City,  which  he  has  accepted,  payable  at  his  office. 

J) 
Pay  Gas  Bill  for  November,  in  cash,  3.75. 

Sell  Oliver  Bros.  &  (!o.,  Williamsburg,  on  "/c,  50  Kegs  Cut  Nails,  5000  lbs.;  10  B.  Drills. 

2.  ■  . 

Receive  the  goods  ordered  of  Corning  &  Co.,  Albany,  29th  ult. 

J? 

Receive  of  L.  B.  Mason,  to  balance  account,  his  check  on  Traders'  Bank,  107.75,  and  hi*  note  at 
15  days,  with  interest,  payable  at  Traders'  Bank,  200.00. 

3. 

Receive  cash  of  E.  Langworthy,  in  full  of  "fc,  58.75. 

>? 

Deposit  iu  F.  C.  Bank,  currency,  100.00;  also,  L.  B.  Mason's  check  rece'ivcd  yesterday. 


THEORETIOAIi    AND    I'RACmCM,    BOOK-KEKPING.  7i 


Eemit  bv   letter  to  Hart,  Blivea  &  Mead,  to  balance  "/c,  a  draft  on  New  York,  399.50,  wliich  you 
purchase  at  F.  C.  Bank.     Give  cheek  to  cover  the  draft  and  exchange  at  ^  ^. 

4. 

Sell  Barber  &  Swift,  Georgetown,  on  %   10  doz.  C.  S.  Axes;  3  I.  G.  Freezers;  500  lbs.  B.  Metal; 
20  pairs  B.  I).  Hangers. 

Your  acceptance  due  to-day  has  been  paid  by  F.  G.  Bank  and  charged  to  your  i^c. 

5. 
Buy  of  Hemingway  &  Selden,  City,  on  "fe,  6  I.   G.  Freezers;    20   doz.    P.    6.    Goal    Hods;    10 
Copying  Presses;  10  doz.  Steelyards. 

The  draft  drawn  on  C.  B.  Shafer,  Gasport,  27th  nit,  has  been  returned  protested  for  non-payment. 
Protest  fees,  1.50.     Give  F.  G.  Bank  a  check  to  cover  the  face  of  the  draft  and  fees. 
Note. — Debit  Shafer's  account  for  the  draft  and  fees. 

6 

Sell  L.  B.  Mason,  City,  on  "/c,  5  Grindstones;    10  doz.  G.  S   Augers;    12  doz.  Steelyards,   30  jiairs 
B.  D.  Hangers;  5  doz.  Cow  Bells,  3  I.  G.  Freezers;  50  doz.  R.  H.  Bread  Knives. 

7. 
Receive  cash  of  E.  R.  Andrews  for  his  acceptance  due  to-day. 

8. 
Receive  a  letter  from  Barber  &  Swift,  Georgetown,  stating  that  tlie  Babbit  Metal  sold  them  4th  inst. 
is  of  an  inferior  quality.  They  propose  to  keep  the  metal  if  a  reduction  of  4o  per  lb.  is  made.  Write 
to  Hart,  Bliven  &  Mead,  of  whom  you  purchased  it,  reciting  the  facts,  and  ask  their  consent  to  make 
the  allowance  and  give  you  credit,  or  have  the  metal  returned  to  them,  as  they  may  prefer. 
(Memorandum.) 

9 

Receive  of  Oliver  Bros.  &  Co.,  their  note  at  60  days,  in  your  favor,  payable  at  German-American 

Bank,  to  apply  on  «/c.  150.00 

)» 

Receive  cash  of  Barber  &  Swift,  on  «/c,  100.00. 

10  .  . 

'Sell  E.  Langworthy,  Marcellus,  on  "/c,  '.>  doz.  G.  S   Augers;  10  Grindstones;  15  Kegs  Gut  Nails, 
1500  lbs.;  5  B.  Drills;  5  doz.  R.  H.  Bread  Knives.. 

Your  note,  with   mterest,  favor  of  Pratt,  Gouway  &   Mills,   due  to-day,  has  been  paid  by  F.  G. 
Bank  and  charged  to  your  "/c. 

11 

Accept  Pratt,  Conway  &  Mills  draft  on  you,  at  3  days  sight,  favor  H.  W.  Hardy,  payable  at  F.  C. 
Bank,  100.00. 

12. 

Order  by  letter,  of  Hart,  Bhven  &  Mead,  New  Y'ork,  to  be  shipped  via  W.  S.  R.  R.,  15  doz.  Gow 
Bells;  10  B.  Drills;  10  doz.  G.  S.  Axes;  20  doz.  C.  S.  Augers.  t 

J? 

Deposit  in  F.  G.  Bank,  cash,  250.00. 

13. 

.  Give  Hemingway  &  Selden  check  on  F.  G.  Bank,  on  <^,  200.00. 

Hart,  Bliven  &   Mead,  in  answer  to  your  letter  of  8th  inst.,  instruct  you  to  make  the  allowance 
asked  for  by  Barber  &  Swift,  and  charge  the  same  to  their  <yc. 
Note.— Credit  Barber  &  Swift  and  debit  H.  B.  &  M. 

14 
Receive  cash  for  note  and  interest  in  your  favor,  due  to-day. 


78  THEORETICAL   AND    PRACTICAL    BOOK-KEEPING. 

15 
Keceive  the  goods  ordered  of  Hart,  Bliveu  &  Mead,  12th  inst. 

16. 

Accept  E.  Corning  &  C'o.'s  draft  ou  you,  at  3  days  sight,  favor  of  themselves,  payable  at  F.  C. 
Bank,  211.50. 
V  17.  .  • 

Sell  "Wm.  Perrin's  Sons,  Frankfort,  on  "jc,  5  doz.  C.  S.  Axes;   10  doz.  W.  Wrenches;    15  doz.  C. 
Stretchers;  24  pairs  B.  D.  Hangers;  6  Copying  Presses;  10  U   C.  Wringers. 

Your  acceptance,  due  to-day,  has  been  paid  and  charged  to  your  "/c  by  F.  C.  Bank 

18. 

C.  B.  Shafer  has  compromised  with  his  creditors  at  50  cents  on  the  dollar.     Receive  cash  from 
him  on  that  basis,  in  full  settlement  of  his  indebtedness. 

Note. — Credit  him  in  C.  B.  for  the  cash  and  make  an  entry  in  J.  to  close  his  account. 

19. 
Receive  cash  of  Oliver  Bros.  &  Co.,  in  full  of  "jc,  123.50. 

20. 
Geo.  D.  Whitney  drav/s  from  the  business,  for  private  use,  by  check  on  F.  C.  Bank,  250.00. 

?j 

Receive  cash  for  note  and  interest,  in  your  favor,  due  to-day. 

21. 
Deposit  cash  in  F.  C.  Bank,  500.00. 

22. 

Deliver  to  E.  W.  Cooper,  1  Copying  Press;  1  I.  C.  Freezer,  on  H.  N.  Smith's  order,  same  to  apply 
on  rent. 

Note. — Debit  Expense  in  S.  B. 

j> 

Your  acceptance,  due  to-day,  has  been  paid  and  charged  to  your  account  by  F.  C.  Bank. 

23 
Receive  cash  of  L.  B.  Mason,  on  "jc,  100.01). 

24. 

Remit  by  letter  to  E.  Corning  &  Co.,  Albany,  your  note,   their  favor,  at  30  days,  300.00;    jour 
note,  their  favor,  at  60  days,  300.00;  and  your  check  on  F.  C.  Bank,  certified  by  W.  D.  Burgess,  teller, 

277.50,  to  balance  "jc. 

25 

Sell   Oliver  Bros.   &•  Co.,  Williamsburg,  on  <^c,  16  doz.    C.    Stretchers;   10  doz.  W.  Wrenches;  9 
Copying  Presses,  20  doz.  C.  S.  Axes;  5  B.  Drills. 

27. 
Purchase,  by  cheek  on  F.  C.  Bank,  a  New  York  Draft,  200.00,  &t  \  %  exchange,  and  remit  same 
to  Hart,  Bliven  &  Mead,  to  apply  on  «/c. 

28 
Pay  sundry  freight  bills  for  the  month,  in  cash,  25.18. 

29 
Receive  cash  for  note  and  interest,  in  your  favor,  due  to-day. 

30 

Receive  cash  of  Wm.  Perrin's  Sons,  in  full  of  %  432.00;  also  of  L.  B.  Mason,  to  apply  on  % 

150.00. 

31 

Pay  H.  N.  Smith  rent  for  December,  less  amount  of  his  order  22nd  inst.,  by  check  on  F.  C.  Bank. 
Give  Hemingway  &  Selden  check  on  F.  C.  Bank,  on  <^,  100.00. 


THEORETICAL    AND    PKAOTIOAL    BOOK-KEEPING. 


79 


31. 
Pay  clerk's  salaries  in  full  to  date,  in  cash,  175.00. 

Deposit  in  F.  C.  Bank  all  the  cash  on  hand,  1289.62. 

« INVENTORY,   DEC.  31,  188-. 

MERCHANDISE.— Goods  on  hand,  as  per  Inventory  Book,. 1381.93 

EXPENSE.— Safe  on  hand,  valued  at  5^  below  cost, .-.  213.75 

■  You  may  now  balance  the  Cash  Book,  foot  the  Sales  Book,  post,  make  out  Balance  Sheet  and  close 
the  Ledger.  The  balance  in  F.  0.  Bank  should  be  2809.44.  The  sales  for  the  niontli  should  be 
2252.75.  Before  making  the  Balance  Sheet,  close  Geo.  D.  Whitney,  Private  Account,  into  Geo.  D. 
Whitney  account.     The  Summary  of  your  Balance  Sheet  should  agree  with  the  following: 

SUMMARY. 


Total  Gains, -- - 836  03 

"      Losses, - 577  90 


Net  Gain  of  Firm, 248  12 

Total   Resources, 5717  87 

"      Liabilities, -- 934  00 


Present  Worth  of  Firm, 4783  87 


Student's  i  Net  Gain, 124  06 

Present  Worth, 124  06 

Geo.  D.  Whitney's  Net  Credit, -.4535  75 
i  Net  Gain,..   134  06 


Present  AVorth, 4659  81 


Present  Worth  of  Firm, 4783  87 


Note. — After  you  have  completed  the  work  upon  your  books,  present  them,  together  with  all  of  the  business 
papers  involved  in  the  foregoing  set,  to  the  teacher  for  inspection.  An  examination  will  likewise  be  given,  in  which 
you  will  be  required  to  make  the  journal  entries  for  all  of  the  parties  in  a  large  variety  of  business  transactions,  together 
with  a  review  of  the  principles  as  outlined  in  the  questions  upon  pages  53,  54  and  63,  together  with  the  following: 


MISCELLANEOUS  QUESTIONS. 

NoTK. — Written  answers  are  required  to  the  following  questions. 

'  Prom  what  does  Double  Entry  Book-keeping  take  its  name?  ^  How  are  you  enabled  to  decide  to 
which  of  the  two  general  classes  of  accounts  used  in  double  entry  any  jjarticular  account  belongs? 
'Wliat  title  may  be  used  instead  of  the  proprietor's  name?  'Mention  three  accounts  that  you  can 
always  tell  which  side  should  be  greater,  if  there  is  any  difference?  ^  To  which  of  the  two  general 
classes  of  accounts  does  a  Personal  account  belong?  *  What  circumstance  might  arise  to  place  it  in  the 
other  class?  '  Why  is  it  necessary  that  Bills  Payable  and  Bills  Receivable  should  always  bo  debited  and 
credited  with  their  face  value?  '  Mention  some  of  the  errors  which  will  not  affect  the  equality  of  the 
Ledger.  '  In  case  the  Trial  Balance  does  not  prove,  give  the  short  tests  to  bo  applied  before  proceeding 
to  examine  the  posting.  '"Wlicn  the  cheek  of  another  person  is  received,  how  is  it  journalized? 
"  Give  an  example  of  an  inventory  showing  a  liability.  "  Give  the  two  ways  of  finding  the  Present 
Worth  in  double  entry.  "What  is  meant  by  Insolvency?  "What  is  the  object  of  closing  accounts 
showing  lossos  and  gains?  '*  In  closing  an  account,  why  is  the  equality  of  the  Lodger  not  affected? 
'•  What  is  meant  by  the  acceptance  of  a  draft?  "Give  the  general  rule  for  journalizing  drafts  when 
drawn  on  account.  '"  What  journal  entry  is  made  when  the  proprietor  commences  business  with  both 
Resources  and  Liabilities?  "  Wliat  would  a  Shipment  account  show  at  the  time  of  making  a  Balance 
Sheet,  if  no  Account  Sales  had  been  received?  "  What  would  a  Consignment  account  sliow,  if  tmclosed 
at  time  of  making  a  Balance  Sheet?  "In  closing  an  account  having  a  resource  inventory,  why  is  it 
necessary  to  credit  the  account  with  the  inventory  before  it  can  be  closed?  "  After  the  account  has 
been  closed,  why  must  the  inventory  be  carried  below  the  rulings?  ^  Why  is  tiie  loss  or  gain  not 
carried  below  the  rulings?  "When  are  personal  accounts  usually  closed?  **  Do  errors  in  journalizing 
affect  the  equality  of  the  Ledger?  *"  What  advantage  is  obtained  by  using  the  Cash  Book  as  a  principal 
book?  "How  is  the  work  of  posting  from  the  Cash  Book  performed?  ''What  advantage  is  obtained 
by  using  the  Sales  Book  as  a  principal  book?  ^  How  are  transactions  with  the  bank  treated  wlien  no 
bank  account  is  kept  in  the  Ledger,  and  how  are  the  entries  made  for  such  transactions?  **  How  is  the 
Cash  Book  balanced  when  there  is  cash  both  in  the  safe  and  in  the  bank? 


80 


THEOKETICAI.    AND    PRACTICAL    BOOK  KKKPING. 


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SINGLE    ENTRY. 


■  The  distinguishing  feature  of  Single  Entry  book-keeping  is,  that  only  Personal  accounts  are 
kept  in  the  Ledger. 

'  This  system  of  book-keeping  contemplates  such  a  record,  or  the  filing  of  such  documents  for 
reference  only,  as  will  enable  the  proprietor  to  determine  at  any  time  the  Kesources  and  Liabilities  of 
his  business,  which  cannot  be  found  by  taking  an  inventory. 

'  For  this  purpose  the  practice  is  to  journalize  and  post  personal  accounts  only.  Cash  receipts  and 
payments  are  entered  in  the  Cash  Book,  and  Bills  Receivable  and  Bills  Payable  in  the  Bill  Book. 

'  It  is  sometimes  found  necessary  to  employ  additional  books  of  record,  the  number  and  character 
depending  upon  the  nature  and  extent  of  the  information  which  it  is  desired  to  preserve:  as.  Order 
Book,  Livoice  Book,  Sales  Book,  etc. 

'  Since  no  accounts  showing  gains  and  losses  are  kept  in  Single  Entry,  it  follows  that  an  itemized 
statement  of  the  gains  and  losses  of  the  business  cannot  be  obtained. 

'The  Net  Gain  or  Net  Loss  of  the  business  can  be  determined,  however,  in  the  following 
manner:  First  ascertain  the  Present  Worth,  by  finding  the  difference  between  the  Resources  and 
Liabilities,  and  then  compare  it  with  the  Investment. 

'  If  the  present  worth  is  greater  than  the  investment,  the  difference  shows  a  net  gain;  if  less,  a 
net  loss. 

The  following  sets  are  designed  to  illustrate  book-keeping  by  Single  Entry,  also  changing  Single 
Entry  books  to  Double  Entry.  The  books  to  be  used  are  Journal,  Ledger,  Cash  Book  and  Bill  Book. 
The  form  of  Journal  is  illustrated  on  page  82.  The  Bill  Book  is  to  be  kept  in  the  form  used  hereto- 
fore, and  the  Cash  Book  as  illustrated  on  page  89. 

81 


82 


THEORETICAL    AND    PKACTIC'AL    BOOK-KEEPING. 


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THEOKETICAL   AND    PRACTICAL    BOOK-KEEPING.  83 

JANUARY    1,  188-. 

Commence  business  with  the  following  resources:  Store  and  Lot  valued  at  2500.00;  Horse  and 
Wagon  valued  at  235.00;  Cash,  500.00.  {Enter  in  Journal  and  Cash  Book;  see  form  of  Journal  oti 
page  82,  and  form  of  Cash  Booh  on  page  89.)  ^^ 

Buy  of  Smith,  Perkins  &  Co.,  City,  on  %  at  15  days,  10  bbls.  A  Sugar,  1250  lbs.,  @  10c. ;  10  ch. 
Japan  Tea,  350  lbs.,  @  60o.;  10  ch.  Black  Tea,  350  lbs.,  @  45c.;  5  half  bbls.  Mackerel,  @  4.00;  10 
mats  Java  Coffee,  1250  lbs.,  @  22c.     {Enter  in  J.;  seepage  82.) 

Note. — It  is  unnecessary  to  enter  the  items  in  tlie  Journal,  tlie  Invoice  itself  being  placed  on  file  for  reference. 

Sell  A.  Thompson,  Aurora,  on  <^c,  3  ch.  J.  Tea,  70  lbs.,  @  70c.;  2  ch.  B.  Tea,  70  lbs.,  @  50c. 
{J.;  see  form  on  page  82.) 

Cash  sales,  per  Cash  Drawer,  175.38.     (C.  B.;  see  3,  page  81.) 

2. 
Sell  Mrs.  Eliza  Smith,  37  Main  St.,  on  afc,  10  lbs.  A  Sugar,  @  lie;  1  lb.  J.  Tea,  @  85c.;  2  lbs. 
J.  Coffee,  @  28c.     {J.) 

Buy  of  Smith,  Perkins  &  Co.,  on  "je,  10  bbls.  Brown  Sugar,  1250  lbs.,  @  9c.;  10  sacks  Rio  Coffee, 

800  lbs.,  @  18c. 

J? 

Sell  Wm.  Johnson,  144  Lyell  Ave.,  on  «/f,  4^  lbs.  Mackerel,  @  12c.;  1  lb.  B.  Tea,  55c.;  3  lbs.  Rio 
Coffee,  @  34c. 

3. 

Give  Smith,  Perkins  &  Co.,  your  note  at  10  days,  payable  at  College  Bank,  to  apply  on  "jc,  300.00. 
{J.  and  B-  B.;  see  3,  page  81.) 

Note. — Before  entering  this  note,  draw  a  red  line  across  both  pages  in  the  Bill  Book,  below  the  last  entry,  to  separate 
this  from  the  previous  sets. 

Receive  cash  of  A.  Thompson,  on  "fc,  15.00.     {J.  and  C.  B.)  * 

?? 
Buy  of  Smith,  Perkins  &  Co.,  on  "/c,  13  doz.  Brooms,  @  2.35;  4  doz.  Wood  Pails,  @  3.00. 

jj 

Sell  James  Jamieson,  27  Broadway,  on  'fc,  25  lbs.  A  Sugar,  @  10c. ;  4  lbs.  J.  Tea,  @  80c. ;  3  lbs. 
Rio  Coffee,  (§)  34c. 

5. 

Pay  Clerk  cash,  to  apply  on  Salary,  5.00.     {C.  B.) 

?j 
Cash  sales,  per  Cash  Drawer,  246.75.     {C.  B.) 

6. 
Sell  Mrs.  Eliza  Smith,  on  ajc,  10  lbs.  B.  Sugar,  @  10c. ;  4^  lbs.  M:ackerel,  @  13c. ;  2  Wood  Pails, 
@  25c. 

Receive  cash  of  Wm.  Johnson,  3.00,  and  of  James  Jamieson,  5.00,  on  "/c.     {J.  and  C.  B.) 

7. 
Buy  of  H.  Gordon •&  Co.,  City,  on  your  note  at  20  days,  payable  at  College  Bank,  2  bbls.  A  Sugar, 
250  lbs.,  @  10c. ;  2  bbls.  Brown  Sugar,  350  lbs.,  @  8^c. ;  1  ch.  Japan  Tea,  35  lbs.,  @  55c.     {B.  B.; 
see  S,  page  81;  also  see  note  below.) 

Note. — No  entry  is  to  be  made  in  the  Journal,  because  your  indebtedness  is  not  to  Gordon  &  Co.  personally,  but  ip 
the  form  of  Bills  Payable,  and  is  shown  by  the  Bill  Book. 

Sell  Mrs.  Eliza  Smith,  on  ajc,  3  Wood  Pails,  @  22c. ;  1  Broom,  25c. ;  1  lb.  Rio  Coffee,  24c, 


84  V  THEORETICAL   AND    PRACTICAL    BOOKKEEPING. 

7. 

Cash  sales  for  the  day,  per  Cash  Drawer,  127.64. 

8. 
Eeceiye  of  Alex.  Thompson,  his  note  at  3  days,  payable  at  Traders'  Bank,  to  apply  on  <^,  25.00. 
{J.andB.B.) 

Note. — A  good  rule  for  the  student,  who  is  familiar  with  double  entry,  to  use  in  journalizing  by  single  entry,  is,  first 
to  decide  what  journal  entry  would  be  made  for  the  transaction  by  the  double  entry  method ;  then  if  he  find  in  such  entry 
that  a  person  is  to  be  either  debited  or  credited,  the  same  person  must  be  debited  or  credited  in  tlie  single  entry  Journal, 
otherwise  no  journal  entry  is  to  be  made. 

9. 

Sell  Wm.  Johnson,  on  "jc,  50  lbs.  B.  Sugar,  @  9^0. ;  1  Broom,  25c. ;  5  lbs.  Rio  Coffee,  @  24c. ;  2 

Wood  Pails,  @  22c. 

)? 

Pay  cash  for  ton  of  Coal  for  office  use,  6.50. 

10. 
Pay  Smith,  Perkins  &  Co.,  cash  to  apply  on  "jc,  100.00.     (/.  a7id  0.  B.) 

)j 
Buy  of  Geo.  F.  Doyle,  Salina,  on  <^,  at  10  days,  25  bbls.  Salt,  @  1.25. 

Wm.  Johnson  returns  for  credit,  4  lbs.  of  the  Eio  Coffee  bought  Otli  Inst.,  the  quality  not  being 
satisfactory. 

Sell  A.  Thompson,  10  bbls.  Salt,  @  1.40;  2  ch.  J.  Tea,  70  lbs.,  @  70c.;  3  bbls.  B.  Sugar,  375  lbs., 
@  10c.     Eeceive  in  payment,  cash,  25.00.     Balance  on  "/c.     (/.  and  C.  B.) 

Note. — In  transactions  like  the  above  in  single  entry,  it  is  customary  to  make  an  entry  in  the  Journal  debiting  the 
person  with  the  whole  bill  purchased,  and  then  make  a  second  entry  giving  him  credit  for  the  amount  paid. 

Pay  Clerk  cash  to  apply  on  Salary,  10.00. 

?) 

Receive  cash  of  Mrs.  Eliza  Smith,  to  ap])ly  on  "jc,  1.50. 

13. 
Pay  Smith,  Perkins  &  Co.,  to  apply  on  «jc,  cash,  50.00,  and  your  note  at  ton  days,  payable  at 
College  Bank,  100.00.     {J.,  0.  B.  and  B.  B.) 

Sell  Wm.  Johnson,  on  «/c,  10  lbs.  A  Sugar,  @  10c. ;  2  lbs.  J.  Tea,  @  85c. ;  5  lbs.  Rio  Coffee,  @  22c. 

14. 
Buy  of  Geo.  F.  Doyle,  on  %  at  10  days,  25  bbls.  Salt,  @  1.25. 

J? 

Receive  cash  of  A.  Thompson,  for  his  note  of  8th  inst.  due  to-day,  25.00.     (C.  B.  and  B.  B.) 

Cash  sales,  as  per  Cash  Drawer,  358.40. 

15. 

Pay  Geo.  F.  Doyle's  sight  draft  on  you  to  apply  on  <5fc,  in  cash,  25.00.     (/.  and  G.  B.) 

Pay  Book-keeper  cash,  to  apply  on  Salary,  25.00. 

Receive  of  A.  Thompson,  his  note  at  ten  days,  payable  at  Traders'  Bank,  to  balance  %  119.50. 

Sell  James  Jamieson,  on  %  10  lbs.  B.  Sugar,  @  9^0. ;  2  lbs.  J.  Tea,  @  SOc. ;   ^  lbs.  Rio  Coffee,  @  24c. 

16. 
Pay  your  note  of  3d  inst.,  favor  of  Smith,  Perkins  &  Co.,  in  cash,  300.00. 

Note.— You  may  now  balance  the  Cash  Book  and  post  the  foregoing  transactions.  Give  each  account  one-fourth 
of  a  page  space.  The  books  are  to  be  changed  to  Double  Entry  after  you  have  completed  the  posting,  full  instructions 
for  which  are  given  below.  You  should  study  those  instructions  very  carefully,  and  perform  the  work  precisely  as  they 
direct. 


THEORETICAL    AND    PRACTICAL    BOOK-KEEPING. 


85 


INSTRUCTIONS  FOR  CHANGING  THE   BOOKS  TO  DOUBLE  ENTRY. 

1st.  *An  inventory  is  to  bo  taken  of  tlie  Mdse.  and  other  property  on  lianil,  its  value  being 
estimated  at  what  the  jiroperty  coukl  be  purchased  for  at  -the  present  time.  Tlie  result  of  such 
inventory  is  as  follows: 

INVENTORY,  JANUARY  16,   188-. 

Mdse.  on  hand,  yiov  Inventory  Book, 270  7:1 

Horse  and  Wagon,  valued  at _ 225  00 

StoreandLot,  "       " 2500  00 

Note. — You  may  copy  tlie  above  Inventory  in  your  Journal,  immediately  following  the  last  entry. 

2d.  'The  resources  and  liabilities  exhibited  by  the  various  books,  viz:  Ledger,  Cash  Book  and 
Bill  Book,  are  next  to  be  obtained,  and,  with  the  Inventories,  arranged  in  a  convenient  form,  as  shown 
below,  for  determining  the  condition  of  the  business. 


STATEMENT,  JANUARY   16,   U 


RESOURCES. 

Mdse.,  per  Inventory, 270  72 

Store  and  Lot,  per  Inventory, 2500  00 

Horse  and  Wagon,  per  Inventory, 225  00 

Cash,  per  Cash  Book, .  961  17 

Bills  Eeceivable,  per  Bill  Book, 119  50 

Personal  Accounts,  per  Ledger,  _ 16  93 


4093  32 


LIABILITIES. 
Bills  Payable,  per  Bill  Book,_._ 
Personal  Accounts,  per  Ledger, 


165  50 
566  50 


732  00 


SUMMARY. 


Total  Eesources, 4093  32 

"     Liabilities, 732  00 


Present  Worth, 3361  32 


Present  Worth, 3361  32 

Investment,   3225  00 


Net  Gain, 136  32 


Note. — Make  a  Statement  like  the  above  in  your  Trial  Balance  or  Statement  book.  Do  not  copy  the  above  form 
merely,  but  verify  all  of  the  results  by  your  own  books. 

3d.  '°  The  Present  Worth  is  found,  as  shown  above,  by  taking  the  difference  between  the  Kesources 
and  Liabilities;  and  "  the  Net  Gain  is  then  found  by  taking  the  difference  between  tlio  Present  Worth 
and  the  Investment. 

4th.  "  Since  in  Single  Entry  the  Ledger  contains  only  a  portion  of  the  Resources  and  Liabilities, 
viz:  Personal  accounts,  it  is  apparent  that,  to  change  it  to  Double  Entry,  such  additional  accounts 
must  be  opened  as  will  cause  the  Ledger  to  exhibit  all  of  the  Resources  and  Liabilities  of  the  business, 
as  shown  by  the  foregoing  Statement;  and  "the  Net  Gain  must  be  credited  to  the  Proprietor's  account. 

Note. — You  may  now  proceed,  in  accordance  with  the  above  instructions,  to  open  the  additional  accounts  required 
to  place  your  Ledger  in  the  Double  Entry  form.  After  you  have  completed  this  work,  your  accounts  should  correspond 
with  those  given  on  pages  86-87.  Mdse.  will  require  one-half  of  a  page  space;  all  other  accounts  one-fourth  of  a  page 
each. 


5th.  "  After  the  change  to  Double  Entry  has  been  made  in  accordance  with  the  foregoing  direc- 
tions, your  Ledger  must  be  in  balance,  because  all  of  the  Resources  appear  upon  the  Dr.  side,  and  all 
of  the  Liabilities  and  the  Present  Worth,  which  is  the  difference  between  tlie  Resources  and  Liabilities, 
appear  upon  the  Cr.  side. 


86 


THEOKETIOAL   AND     PRACTICAL   BOOK  KEEtlUG. 
STUDENT. 


188- 
Jan. 


IG 


Present  Worth, 


3361 

33 

188- 
Jan. 

1 
16 

16 

3361 

32 

Jan. 

Investment, 
JSTet  Gain, 


Present  Worth, 


83 


3325 
136 


3361 


3361 


33 


3^ 
33 


SMITH,   PERKINS  &  CO. 

City. 

188- 

188- 

Jan. 

3 

Bills  Pay., 

82 

300 

Jan. 

1 

Mdse. 

82 

787 

50 

10 

Cash, 

100 

2 

a 

82 

256 

50 

13 

Sundries, 

150 

5  5  0 

3 

a 

82 

35 

1  0  7  S 

A.  THOMPSON,   Aurora. 


188- 
Jan. 


Mdse. 


83 

84 
100 

50 

188- 
Jan. 

3 

8 

11 

13 

184 

50 

Cash, 

Bills  Kec'v, 
Cash, 
Bills  Rec'v, 


82 


15 

35 

35 

119 


184 


50 


50 


MRS.   ELIZA   SMITH,   27   Main   Street. 


188- 
Jan. 


Mdse. 


188- 

82 

2 
2 

t 

51 
01 
93 

45   1 

Jaii. 

13 

Cash, 


50 


WM.  JOHNSON,    144   Lyell  Ave. 


188- 

188- 

Jan. 

2 

Mdse. 

82 

1 

57 

Jan. 

6 

Cash, 

3 

9 

a 

6 

64 

9 

Mdse.  ret'd. 

96 

13 

i( 

3 

J  3 

80 

01 

s 

»t 

JAMES  JAMIESON,  27  Broadway. 


188- 
Jau. 


3 !  Mdse. 

151      " 


188- 

82 

6 
3 

9 

18 

75 

93    i 

Jan. 

6 

Cash, 


GEO.  F.   DOYLE,  Sallna. 


188- 

188- 

Jan. 

15 

Paid  Draft, 

25 

Jan. 

10 
14 

Mdse. 

31 
31 

35 

25 

5  0 

MERCHANDISE. 


188-1 
Jan.     16 


Goods,  per  Inv. 


370 


72 


THEORETICAL   ANB   PRACTICAL   BOOK-KEEPING. 

REAL  ESTATE. 


87 


.188- 
Jaii. 


IG 


Store  and  Lot, 


2500 


EXPENSE. 


188- 
Jan. 


IG 


Horse  and  Wagon, 


235 


CASH. 


188- 
Jan. 


16 


Bal.  per  C.  B. 


961 

17 

BILLS-RECEIVABLE. 


188- 
Jan. 


IG 


On  hand,  per  B.  B. 


119 


50 


BILLS  PAYABLE. 


188- 
Jan. 

16 

Outstanding,  per  B.  B. 


165 


50 


Note. — You  may  now  continue  the  business,  the  books  to  be  Itept  by  Double  Entry.  The  combined  Day  Book  and 
Journal  form,  as  illustrated  on  page  45,  is  to  be  used.  Use  the  Double  Entry  form  of  Cash  Book,  and  post  from  this 
book  as  in  the  preceding  sets.     Continue  the  use  of  the  Bill  Book  as  heretofore. 

JANUARY  17,  188-. 
Buy  of  H.  Gordon  &  Co.,  on  "jc,  10  bbls.  B.  Sugar,  1250  lbs.,  @  8c. 

Cash  sales,  per  Cash  Drawer,  75.35, 

18. 
Sell  Wm.  Johnson,  on  ajc,  3  lbs.  J.  Tea,  @  80c.;  5  lbs.  Rio  Coffee,  @  35c.,-  30  lbs.  A  Sugar,  @  lie. 

Sell  E.  T.  Miller,  on  his  note  at  15  days,  payable  at  City  Bank,  5  bbls.  A  Sugar,  625  lbs.,  @  lO^c; 
10  bbls.  B.  Sugar,  1250  lbs.,  @  9c.;  3  ch.  J.  Tea,  105  lbs.,  @  65c. 

19. 
Receive  cash  of  Mrs.  Eliza  Smith,  to  balance  <^. 

)j 
Buy  of  H.  Gordon  &  Co.,  on  %  15  bbls.  A  Sugar,  1875  lbs.,  @  9^0. 

20. 
Sell  James  Jamieson,  on  °jc,  20  lbs.  A  Sugar,  @  lie. ;  5  lbs.  Rio  Coffee,  @  24c. ;  2  bbls.  Salt,  @  1.50. 


Cash  sales,  per  Cash  Drawer,  115.05. 


21. 


Give  Geo.  F.  Doyle  your  note  at  30  days,  payable  at  College  Bank,  to  balance  "jc. 


Buy  of  H.  Gordon  &  Co.,  on  %  5  cli.  J.  Tea,  175  lbs.,  @  GOc. 

22. 
Sell  A.  Thompson,  10  bbls.  Salt,  @  1.40;  3  cli.  J.  Tea,  70  lbs.,  @  70c.;  3  ch.  B.  Tea,  70  lbs., 
55c.     Receive  cash,  50.00.     Balance  on  «fc. 


88  THEORETICAL    AND    PRACTICAL    BOOK-KEEPllJ^O. 

22. 
Pay  Smith,  Perkins  &  Co.,  cash  on  "/•,  100.00. 

Cash  sales,  per  Casli  Drawer,  98.34. 

23. 
Sell  Frank  C.  Ilcdstrom,  Sardinia,  5  ch.  B.  Tea,  175  lbs.,  @  55c.;  2  doz.  W.  Pails,  @  2.60;  4  doz. 
Brooms,  @  2.G5;  2  half  bbls.  Mackerel,  @  4.75;  5  bbls.  A-Sugar,  625  lbs.,  @  lOic.     Receive  his  note 
at  10  days,  payable  at  First  National  Bank,  100.00.     Balance  on  '^c. 

Eeceive  cash  of  Wm.  Johnson  on  "/c,  5.00. 

24. 

Buy  of  Geo.  P.  Boyle,  on  yonr  note  at  20  days,  50  bbls.  Salt,  @  1.25. 

?» 
Cash  sales,  per  Cash  Drawer,  138.40. 

25. 
Pay  cash  for  permanent  improvements  on  store,  200.00. 

Pay  Gaa  Bill  in  cash,  11.75. 

Sell  Wm.  Johnson,  on  o/c,  5  lbs.  J.  Tea,  @  80c. ;  50  lbs.  B.  Sugar,  @  9^0. ;  10  lbs.  Rio  Coffee,  @  25c. 

26. 
Receive  cash  of  James  Jamieson,  to  balance  ^^c,  11.33. 

Pay  your  note  of  13th  inst.,  due  to-day,  in  cash. 

27. 
Buy  of  Smith,  Perkins  &  Co.,  10  bbls.  A  Sugar,  1250  lbs.,  @  10c. ;  10  bbls.  B.  Sugar,  1250  lbs., 
@  9c. ;  5  ch.  J.  Tea,  175  lbs.,  @  60c.;   10  mats  J.  CofEec,  1250  lbs.,  @  22c.     Give  them  your  note  at 
10  days,  300.00.     Balance  on  ajc. 

28. 
Pay  H.  Gordon  &  Co.  cash  on  ofc,  178.44. 

?? 

Receive  cash  of  A.  Thompson,  for  his  note  of  15th  inst.,  due  to-day. 

29. 
Cash  sales,  per  Cash  Drawer,  216.40. 

?) 

Sell  the  Horse  and  Wagon  for  cash,  235.00. 

30. 
Pay  your  note  of  7th  inst.,  due  to-day,  in  cash. 

31. 
Pay  Book-keeper  25.00,  and  Clerk  15.00,  cash  in  full  of  services  to  date. 

INVENTORIES,  JANUARY  31,  188-. 

MDSE.,  as  per  Inventory  Book, 426  48 

REAL  ESTATE.— Store  and  Lot,  valued  at 2700  00 

You  may  now  post  and  make  a  Balance  Sheet.  After  you  have  completed  the  Balance  Sheet, 
close  the  Ledger  and  bring  down  the  resources  and  liabilities,  and  prove  them  upon  a  separate  sheet  of 
paper,  as  illustrated  on  page  40,  and  present  the  proof,  together  with  your  Ledger,  to  the  teacher  for 
inspection  and  approval. 

A  few  results  are  appended:  Cash  on  hand,  1333.79;  Total  Resources,  4965.58;  Liabilities, 
1346.50;  Net  Gain,  257.76. 


rMEORETlCAL    AND    PRAOTICAL    BOOK-KEEPING. 
FEBRUARY    1,   188-.     (See   Note   No.  1.) 


Bd 


(Student's  name). 


Commenced  business  tliis  day  with  the  following  resources  and 
liabilities: 

Cash  on  hand,  per  Cash  Book, 
On  deposit  in  College  Bank, 
100  bl)ls.  Flour, 

C.  D.  French's  note,  per  Bill  Book, 
Jas.  Harris,  on  "jc, 

(Student's  name). 


Note  favor  Geo.  Wells,  per  Bill  Book, 
Interest  accrued,  80  days  {see  Note  No.  2), 
Due  Hill  &  Co.,  on  "jc, 

College  Bank, 

Amount  on  deposit,  as  above, 

Jas.  Harris, 

On  account,  as  above. 

Hill  &  Co., 

On  account,  as  above, 

2. 
White  Bro's, 

Bo't  Mdse.  on  "jc,  per  Invoice  No.  1, 


Hill  &  Co., 

Paid  them,  on  cjc,  by  check  on  College  Bank, 

College  Bank, 

Check  favor  of  Hill  &  Co., 


Cr. 
rces  and 

8500 

@  8.00, 

3000 

4000 

800 

200 

500 

Dr. 

500 

() 

375 

67 

881 

Dr. 

4000 

Dr. 

500 

Cr. 

375 

Cr. 

1181 

Dr. 

100 

Cr. 

100 

07 


SINGLE  ENTRY  CASH   BOOK. 


188 

RECEIPTS. 

PAYMENTS. 

Feb. 

1 
4 

Invested  by  Student, 
Deposited  in  College  Bank, 

3000 

500 

4 

15  bbls.  Beef,                                                            .              @  18.75, 

281 

25 

6 

C.  D.  French's  note, 

200 

J? 

White  Bro's,  on  "je. 

500 

7 

R.  J.  Barton,  to  apply  on  Mdso. 

300 

8 

Office  Books  and  Stationery, 

25 

9 

O.W.  Jones,  on  <f. 

250 

10 

Deposited  in  College  Bank, 

1000 

12 

Jas.  Harris,  on  «ifc. 

200 

Note  No.  1. — The  month  of  February  is  to  be  worked  by  Single  Entry,  as  explained  in  the  previous  set.  A  few  of 
the  first  entries,  as  they  should  be  made  in  your  Journal,  are  given  above.  In  addition  to  the  Personal  accounts, 
however,  a  Bank  account  is  to  be  kept  in  the  Ledger.  Use  the  Single  Entry  form  of  Cash  Book,  as  illustrated  above, 
and  continue  the  use  of  the  Bill  Book  as  heretofore.  On  March  1  the  books  are  to  be  changed  to  Double  Entry,  and 
the  business  continued  through  March  by  that  method. 


&<^  •THEOREl'ICAt,   AND   PRACTICAL   BOOK-KEEPlKft. 

FEBRUARY,  188-. 
1.    Commence  business  this  day  with  the  following  resources  and  liabilities: 

Resources:     Cash  on  hand,  3000.00;  on  deposit  in  College  Bank,  4000.00;  100  bbls.  Hour,  @ 
8.00;  C.  D.  French's  note,  dated  Jan.  4th  last,  at  30  days,  :<!00.00;   Jas.  Harris  owes  on  °k 
600.00. 
Liabilities:    Your  note  favor  of  Geo.  Wells,  dated  Nov.  13  last,  at  90  days,  payable  at  College 
Bank,  with  interest,  500.00;  Interest  accrued  80  days  on  above  note;  due  IIHl  &  Co.,  on  % 
375.00. 
3.    Buy  of  White  Bro's,  on  «/c,  50  bbls.  Pork,  @  15.00;  25  bbls.  Beef,  @  17.25. 

3.  Give  Hill  &  Co.  your  check  on  College  Bank,  to  apply  on  <^c,  100.00.     (,/.) 
Sell  0.  W.  Jones,  on  ojc,  25  bbls.  Flour,  @  9.00;  15  bbls.  Pork,  @  1G.50. 

4.  Deposit  cash  in  College  Bank,  500.00. 
Sell  for  cash,  15  bbls.  Beef,  @  18.75. 

5.  Buy  of  Geo.  J.  Marsh,  on  your  note  at  15  days,  50  bbls.  Beef,  @  17.25. 

6.  Receive  cash  for  a  note  due  to-day. 
Pay  White  Bro's  cash  on  %  500.00. 

7.  Sell  R.  J.  Barton,  20  bbls.  Beef,  @  18.50;  25  bbls.  Flour,  @  9.00.    Receive  cash,  300.00.    Balance 

on  'fc. 

8.  Pay  cash  for  set  of  Office  Books  and  Stationery,  25.00. 

9.  Receive  cash  of  0.  W.  Jones,  on  %  250.00. 

10.  Deposit  cash  in  College  Bank,  1000.00. 

11.  Sell  H.  A.  Strong,  on  his  note  at  60  days,  25  bbls.  Pork,  @  16.25. 

12.  Buy  a  Safe  for  office  use,  and  pay  for  same  by  check  on  College  Bank,  225.00. 
Receive  cash  of  Jas.  Harris,  on  ojc,  200.00. 

13.  Buy  for  cash,  25  bbls.  Pork,  @  15.00. 

14.  Sell  0.  W.  Jones,  25  bbls.  Beef,  '@  18.50;  25  bbls.  Flour,  @  9.25.     Receive  his  note  at  10  days, 

with  interest,  payable  at  City  Bank,  500.00.     Balance  on  "jc. 
Your  note  and  tlie  interest  upon  it,  7.75,  due  to-day,  has  been  charged  to  your  «/c  at  College  Bank. 

15.  Sell  for  cash,  10  bbls.  Pork,  @  16.50. 

16.  Draw  cash  from  the  business  for  your  private  use,  50.00. 

17.  Sell  Bcnj.  C.  Green,  15  bbls.  Beef,  @  18.50;  10  bbls.  Pork,  @  16.35.     Receive  cash,  150.00,  and 

his  note  at  60  days,  payable  at  Traders'  Bank,  for  balance. 

18.  Give  White  Bro's  your  check  on  College  Bank,  to  apply  on  ^'je,  300.00. 

20.  Sell  for  cash,  10  bbls.  Flour,  @  9.25;  5  bbls.  Pork,  @  16.25. 

21.  Buy  of  White  Bro's,  on  afc,  25  bbls.  Beef,  @  17.25. 

22.  Receive  cash  of  Jas.  Harris,  to  balance  ojc,  300.00. 

23.  Buy  of  Geo.  J.  Marsh,  on  your  note  at  25  days,  payable  at  College  Bank,  50  bbls.  Pork,  @  15.00. 
R.  J.  Barton  has  compromised  with  his  creditors  at  25  ^.  Settle  his  "fc  on  that  basis,  receiving  cash. 
Pay  your  note  die  to-day  in  cash. 

24.  Receive  cash  of  0.  W.  Jones,  on  ofc,  222.50. 

Get  H.  A.  Strong's  note,  received  11th  inst.,  discounted  at  College  Bank,  and  receive  cash  for  the 
proceeds.     (Jf..  Wniv  ^.^  jujuk  ji&!\ 

26.  Sell  D.  B.  Oliver,  on  <^,  20  bbls.  Pork,  @  16.25;  10  bbls.  Beef,  @  18.50. 

27.  Receive  cash  for  a  note,  with  interest,  due  to-day. 

28.  Pay  Salaries,  50.00,  and  Rent  of  Store,  50.00,  in  cash. 

INVENTORIES,   FEBRUARY   28,   188-. 

15  bbls.  Flour,  @  8.00;  40  bbls.  Pork,  @  15.00;  15  bbls.  Beef,  @  17.25. 
Office  Safe,  valued  at  cost. 

Balance  the  Cash  Book.  The  cash  on  hand  should  be  2807. 69.  In  posting,  give  Bank  account 
one-half  of  a  page  space;  other  accounts  one-fourth  of  a  page.  After  posting,  proceed  to  cliange  the 
books  to  Double  Entry,  according  to  the  instructions  given  in  the  previous  set  on  page  85.  The  State- 
ment should  show  a  Present  Worth  of  7534. 94. 

After  the  necessary  steps  have  been  taken  to  change  the  Ledger  to  Double  Futiy,  take  a  Trial 
Balance,  to  be  sure  that  your  Ledger  is  in  balance  before  proceeding  witu  Maicn  Continau  tiie  use 
of  the  Bill  Book  and  Cash  Book  in  March,  using  the  Double  Entry  form  of  Gasli  Book. 


THteOftETiCAL    AND    iPKACTICAL    BOOKKEEPING.  &1 

MARCH,  188-. 

1.  Admit  Geo.  H.  Whitney  and  W.  D.  Welch  as  equal  partners  in  the  business. 

Geo.  H.  Whitney  invests:     Cash,  6324.34;  A.  C.  Holden's  note,  dated  Jan.  7th  last,  at  60  days, 

with  interest,  1200.00;  Interest  accrued  to  date. 
W.  D.  Welch  invests:     Cash,  6054.94;  a  note  made  by  Bently  &  Gardner,  dated  Feb.  16th  last,  at 

90  days,  1500.00;  Discount  to  maturity. 
Sell  for  cash,  15  bbls.  Flour,  @  9.25.  '     . 

Deposit  in  College  Bank,  cash,  13000.00. 

2.  Buy  of  Clark  &  Co.,  300  b])ls.  Beef,  @  17.25;  50  bbls.  Pork,  @  15.00.     Give  in  payment,  your 

note  at  10  days,  6175.00;  your  note  at  30  days,  750.00;  both  notes  payable  at  College  Bank, 
with  interest. 
Take  out  policy  of  insurance  for  one  year  on  property  in  store,  10,000.00.     Pay  premium  at  1^  ^ 
in  cash. 

3.  Keceive  cash  of  0.  W.  Jones,  on  o/c,  100.00. 

4.  Sell  Redmond  Bro's,  Vienna,  25  bbls.  Pork,  @  16.25;  25  bbls.  Beef,  @  18.50.    Receive  in  payment, 

cash,  168.75;  their  note  at  20  days,  with  interest,  payable  at  First  National  Bank,  Vienna, 

400.00.     Balance  on  «jc. 
6.    Deposit  cash  in  College  Bank,  500.00. 

Buy  of  H.  A.  TrafEord,  House  and  Lot,  344  Plymouth  Ave. ,  for  6000. 00.     Assume  a  mortgage  on 

same  of  2000.00,  with  interest  accrued  from  Jan.  2  last,  63  days,  and  pay  him  the  balance  by 

check  on  College  Bank. 
Buy  500  bbls.  Flour,  @  8. 00,  and  pay  for  same  by  check  on  College  Bank. 
8.    Pay  White  Bro's,  to  apply  on  "jc,  B.  C.  Green's  note  rec'd  17th  iilt.,  less  discount  to  maturity. 
Accept  a  draft  at  10  days'  sight,  drawn  on  W.  D.  Welch  by  W.  T.  Owens,  for  his  private  account, 

600.00. 
10.    Pay  cash  for  Coal  for  office  use,  l'i.80. 

Receive  of  D.  B.  Oliver,  to  apply  on  "jc,  his  check  on  Merchants'  National  Bank,  310.00. 

Sell  0.  W.  Jones,  on  ajc,  200  bbls.  Flour,  @  9.25;  100  bbls.  Beef,  @  18.50. 

A.  C.  Ilolden,  whose  note  Whitney  invested  and  guaranteed  its  jiayment,  has  compromised  with 

his  creditors  at  50  ^.     Receive  cash  and  charge  the  deficiency  to  Whitney's  account. 

12.  Deposit  in  College  Bank,  Oliver's  check,  rec'd  10th  inst. 
Pay  Hill  &  Co.  cash  to  balance  "jc. 

Receive  cash  of  0.  W.  Jones,  on  ojc,  3543. 75. 

13.  Buy  of  Scott,  Seymour  &  Scott,  on  ojc,  250  bbls.  Pork,  @  15.00. 

.    Exchange  checks  with  Wm.  E.  Scott  for  Ids  accommodation,  500.00.    His  check  is  dated  16th  inst. 

15.  Your  note  due  to-day,  with  interest,  has  been  charged  to  your  "jc  at  College  Bank. 

16.  Sell  for  cash,  100  bbls.  Beef,  @  18.50. 

Wm.  E.  Scott  being  unable  to  provide  for  the  check  rec'd  of  him  13th  inst.,  gives  you  his  note  at 
10  days,  with  interest,  endorsed  by  Morgan  &  Howe. 
18.    Draw  a  draft  on  Redmond  Bro's  at  60  days,  for  200.00,  and  get  it  discounted  at  College  Bank, 
receiving  credit  for  the  proceeds. 
Sell  D.  B.  Oliver,  on  %  150  bbls.  Pork,  @  16.25;  100  bbls.  Flour,  @  9.25. 

Insure  the  House  No.  344  Plymouth  Ave.  for  4000.00,  at  1^  ^,  for  one  year.     Pay  premium  in 
cash. 
21.    Receive  of  0.  W.  Jones,  to  balance  '^c,  his  note  at  60  days  for  250.00. 

Accept  Scott,  Seymour  &  Scott's  draft  on  you  at  5  days'  sight,  payable  at  College  Bank,  to  apply 

on  afc,  2000.00. 
Pay  an  acceptance  due  to-day  in  cash. 
33.    Yotir  note  due  to-day  has  been  charged  to  your  ojc  at  College  Bank. 

Student  and  Geo.  H.  Whitney  doubting  the  responsibility  of  0.  W.  Jones,  whose  note  the  firm 
holds,  W.  D.  Welch  offers  to  buy  the  note  at  75  ^  of  its  face,  which  ofl'er  is  accepted.     Make 
an  entry  to  adjust  the  transaction. 
24.    Pay  White  Bro's  cash  on  <^c,  100.00. 

26.  Buy  of  Geo.  J.  Marsh,  150  bbls.  Flour,  @  8.00;  50  bbls.  Beef,  @  17.25.     Give  him  your  note  at  60 

days,  payable  at  College  Bank,  for  500. 00,  and  check  on  College  Bank  for  balance. 
Pay  cash  for  permanent  repairs  and  improvements  on  House  No.  344  Plymouth  Ave.,  575.00 

27.  Receive  cash  for  a  note  due  to-day. 


&2  THEORETICAL    AND    PRACTICAL    BOOK-KEEPING. 

28.  Sell  Eedmond  Bro's,  200  bbls.  Flour,  @  9.25;  165  bbls.  Pork,  @  16.25.     Receive  their  note  at  30 

days,  2000.00.     Balance  on  <^c. 
Deposit  cash  in  College  Bank,  5000.00. 
Clark  &  Co.,  who  hold  your  note  for  750.00,  given  them  2d  inst.,  offer  to  discount  25.00  and  the 

accrued  interest  if  you  will  pay  it  to-day.     Accept  their  proposition  and  give  them  a  check  on 

College  Bank. 

29.  Your  acceptance  due  to-day  has  been  charged  to  your  <^e  at  College  Bank. 

Sell  the  House  and  Lot  No.  344  Plymouth  Ave.  to  Jas.  W.  Fonda  for  6500.00.  In  addition  to  this 
price,  he  allows  you  for  tlie  permanent  repairs  and  improvements  paid  for  the  26th  inst. ,  and 
also  .'^7.50  on  the  insurance  paid  18th  inst.  He  assumes  in  payment  the  mortgage  of  2000.00 
and  accrued  interest;  gives  you  his  check  on  Mechanics'  Savings  Bank  for  2103.83,  and  a 
mortgage  upon  the  property  for  the  balance. 

Eeceive  cash  for  a  note  due  to-day. 
31.    Receive  cash  of  J).  B.  Oliver,  to  balance  afc,  3563.50. 

Pay  Salaries  and  Rent  of  Store  in  cash,  100.00. 

Deposit  cash  in  College  Bank,  7000.00. 

INVENTORIES,    MARCH   31,  188-. 

MDSE.— 150  bbls.  Flour,  @  8.00;  140  bbls.  Beef,  @  17.25. 

EXPENSE. — Insurance  unearned,  137.50;  Office  Safe,  valued  at  5  %  below  cost. 

Balance  the  Cash  Book.  Cash  on  hand,  1790.66.  Poat  and  make  out  a  Balance  Sheet.  Net  Gain 
for  the  month,  1674.95.  Close  the  Ledger  and  prove  the  balances  as  heretofore  instructed.  Present 
your  books  and  proof  of  the  balances  to  the  teacher  before  proceeding  with  the  next  set. 

QUESTIONS   FOR   REVIEW. 

Page  81. — '  What  is  the  distinguishing  feature  of  Single  Entry  book-keeping?  '  To  what  extent 
is  it  necessary  to  record  business  transactions  in  Single  Entry?  '  What  books  are  generally  used? 
*What  additional  books  are  sometimes  employed?  *  In  Single  Entry,  why  can  you  not  show  in  detail 
your  gains  and  losses?  '  How  do  you  determine  your  Net  Gain  or  Net  Loss?  'When  will  the  results 
exhibit  a  Net  Loss? 

Page  85. — 'What  is  the  first  step  preparatory  to  changing  books  from  Single  to  Double  Entry? 
'The  second  step?  ""  Why  must  the  Present  Worth  be  found  before  the  Net  Gain  or  Net  Loss  can  be 
determined?  "What  additional  accounts  is  it  necessary  to  open  to  change  the  Ledger  to  Double 
Entry?    "  What  is  the  final  step  to  place  the  Ledger  in  balance?    '*  Why  is  the  Ledger  then  in  balance? 

Miscellaneous. — From  what  sources  do  you  get  the  information  necessary  to  make  out  a  statement 
of  the  Resources  and  Liabilities?  Could  you  find  your  Net  Gain  or  Net  Loss  if  you  did  not  know  what 
you  were  worth  at  commencing?  Could  you  find  your  present  worth?  If  in  making  out  the  statement 
preparatory  to  changing  to  Double  Entry,  a  resource  should  be  omitted,  how  would  it  affect  the  Net 
Gain?    What  entry  would  be  made  in  the  Double  Entry  books  to  correct  such  an  omission? 


SPECIAL  COLUMN  JOURNAL. 


•  Thi!  Special  Column  Jonriuil  is  a  Journal  provided  with  special  or  separate  columns  for  those 
items  which  occur  most  frequently  in  the  business. 

^  The  advantage  of  using  this  form  of  Journal  is  in  the  saving  of  time  and  labor  by  not  j)08ting  to 
the  accounts  the  separate  items  which  are  carried  to  the  special  columns,  '  tlie  footings  only  of  these 
columns  being  posted  daily,  weekly  or  monthly,  as  desired. 

*A11  items  for  which  no  special  columns  are  provided  are  placed  in  the  General  or  Sundries 
column,  and  each  item  posted  separately,  as  in  the  ordinary  Journal  form. 

In  the  form  illustrated  on  page  94  two  special  columns,  Cash  and  Mdse. ,  are  used  on  each  side  of 
the  Journal.  'The  number  of  special  columns  is  not  limited,  however.  °  Any  item  which  occurs 
with  sufficient  frequencj',  either  upon  the  debit  or  credit  side,  to  make  it  desirable,  may  have  a  special 
column  provided  for  it.  In  many  kinds  of  business  it  is  desirable  to  i)rovide  a  special  column  for 
Expense  upon  the  debit  side  of  the  Journal. 

'  The  columns  are  to  be  footed  at  the  bottom  of  each  page,  and  proved  before  being  carried  forward 
to  the  next  page.  *  Tlio  sum  of  the  three  columns  ujwn  the  debit  side  of  the  Journal  must  equal  the 
sum  of  the  three  uj)on  the  credit  side. 

'  In  extending  the  amounts,  particular  care  must  be  exercised,  or  crror,^  will  be  made  by  extending 
amounts  to  the  wrong  columns.  '"""  The  Ledger  would  not  balance  if  a  special  column  item  were  by 
mistake  placed  in  the  Sundries  column,  or  a  Sundries  column  item  in  a  special  column,  because  in  the 
first  case  the  amount  would  be  omitted,  and  in  the  second  case  it  would  be  posted  twice. 

The  transactions  for  the  preceding  month  of  January  arc  iised  in  ilhistraling  tliis  method. 

The  books  to  be  used  are  the  Special  Column  Journal,  Bill  Book  and  Ledger.  The  form  of  the 
Journal  is  illustrated  on  pages  94-98. 

Perform  the  work  from  the  memoranda,  however,  consulting  the  illustrations  only  wheii  necessary. 

The  letters  J.,  C.  B.  and  B.  B.,  together  with  the  notes  given  in  tlie  memoranda,  apply  to  the 
Single  Entry  work,  and  are  not  to  be  observed  in  working  this  set. 

93 


94 


THEORETICAL    AND   PRACTICAL   BOOK-KEEPING. 


THEORKl'ICAL    AND    I'UACTICAL    BOOK  KEEPING. 


95 


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96 


THEORETICAL    AND    PRACTICAL    BOOK-KEEPINa. 

JANUARY   3,  188- 


1079 


65 


50 


690  38 


246 


137 


1144 


50 


1073 


75 


3113 


25 


100 


3285 


01 


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64 


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15 


11 


11 


18 


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Jas.  Jamieson,  To  Mdse. 

27  Broadway. 

25  lbs.  A  Sugar,  10c. ,  2.50 

4    "    J.  Tea,  80c.,  3.20 

2   "    K.  Coffee,  24c.,  .48 

5. 

Expense,  To  Cash, 

Clerk's  Salary. 


Cash,  To  Mdse. 

Sales  per  cash  drawer. 

6. 

Mrs.  E.  Smith,         To  Mdse.      ~ 

10  lbs.  B.  Sugar,  10c. ,  1 

4i   "    Mackerel,  12c.,  .51 

2  Wood  Pails,  25c.,  .50 


Cash,  To  Wm.  Johnson, 

Jas.  Jamieson, 
Rec'd  on  account. 

7. 

Mdse.  To  Bills  Payable, 

Bo't  of  H.  Gordon  &"Co.,  on 
note  as  per  B.  B.,  Invoice 
No.  4. 


Mrs.  E.  Smith,         To  Mdse. 

2  Wood  Pails,  22c.,  .44 

1  Broom,  .25 

1  lb.  R.  Coffee,  .24 


Cash,  To  Mdse. 

Sales  per  cash  drawer. 

8. 

Bills  Receivable,       To  A.  Thompson, 
Rec'd  note  on  ojc,  per  B.  B. 


Wm.  Johnson,  To  Mdse. 

50  lbs.  B.  Sugar,  9|c.,  4.75 

1  Broom,  .25 
5  lbs.  R.  Coffee,  24c.,  1.20 

2  Wood  Pails,  22c.,  .44 


Expense,  To  Cash, 

Coal  for  office. 

10. 

Smith,  P.  &  Co.,      To  Cash, 
Paid  on  oje. 


16 


14 


4619 


65 


25 


50 


4717150 


150 


100 


111 


50 


263 
6 


46 
18 


246 


75 


101 


03 


127 


G4 


i64 


653 


61 


THEOBETICAL    AND    PRACTICAL    BOOK-KEEPING. 

JANUARY   10,   188-. 


97 


1144 
31 


50 
35 


1073  77 


96 


31 


35 


35 


35 


358 


1307 


96 


1482 


50 


SUNDRIES. 


3365  34 


40 


67 


75 


50 


10 


150 


35 


35 


3554 


80 


64 


Mdse.  To  Geo.  F.  Doyle, 

Bo't  on  "fc,  per  Inv.  No.  5. 


Mdse.  To  Win.  Johnson. 

4  U.S.  K.  Coffee  returned,  34c. 

11. 

A.  Tliompson,  To  Mdse. 

Gash, 

10  bbls.  Salt,  1.40,  14. 

3ch.J.  Tea,  701bs.,70c.,  49. 

3  bbls.  B.  Sugar,  375  lbs., 

10c. ,  37.50 


l?ec'd  cash, 
iialance  on  "fc. 


25. 

75.50 


Expense, 
Gash, 


12. 
To  Gash, 
jj 
To  Mrs.  E.  Smith, 


Kec'd  on  "fc. 

13 

Smith,  1'.  &  Co.,      To  Cash, 

Bills  Payable, 
Paid  on  '^.,  cash,  50. 

Note  per  B.  B.,  100. 


Wni.  Johnson,  To  Mdse. 

10  lbs.  A  Sugar,  lOc,  1. 

2    "    J.  Tea,  85c.,  1.70 

5    "    K.  Coffee,  32c.,  1.10 

14. 

Mdse.  To  Geo.  F.  Doyle, 

Bo't  on  <yc,  per  Inv.  No.  6. 


Cash,  To  Bills  Receivable, 

Rec'd  of  A.  Thompson,  for  his 
note  due  to-day  jier  B.  B. 


Gash,  To  Mdse. 

Sales  ])er  cash  drawer. 

15. 

Geo.  F.  Doyle,         To  Cash, 
Paid  his  siarht  draft. 


Expense,  To  Cash, 

Paid  Book-keeper's  salary. 


SUNDRIES. 


4717 
31 


50 
35 


96 


150 


•100 


31 


35 


111 


50 


4907 


46 


10 


50 


G53 


61 


25 


25 


KKI 


50 


!80 


358 


40 


221 


50 


111631 


d8 


THEORETICAL    AND   PRACTICAL   BOOKKEEPING. 

JANUARY    15,  188-. 


MDSB. 

CASH. 

SUNDRIES. 

L.F. 

15 
16 

L.F. 

15 
16 

SUNDRIES.! 

1 

CASH. 

MDSE. 

1207 

96 

1482 

67 

3554 
119 

3 

300 

64 
50 

75 

Bills  Receivable,       To  A.  Thompson, 
Rec'd  his  note  per  B.  B.  to  bal- 
ance "jc. 

)) 

Jas.  Jamieson,          To  Mdse. 

10  lbs.  B.  Sugar,  9^0.,           .95 
2    "    J.  Tea,  80c.,             1.60 
5    "    E.  Coffe,  24c.,          1.20 

16. 

Bills  Payable,           To  Cash, 

Paid  note  favor   Smith,  P.   & 
Co. 

Cash, , 
Mdse. 

4907 
119 

46 
50 

221 
300 

50 

1116 

3 

31 

75 

1207 

96 

1482 

67 

3977 
1482 
1207 

89 
67 
96 

5026 

521 

1120 

96 
50 
06 

521 

50 

1120 

06 

6668 

52 

6668 

52 

"  You  may  now  balance  the  Journal  as  illustrated  above,  and  post  the  foregoing  transactions. 
"  Post  the  totals  only  of  Casli  and  Mdse. ,  as  shown  by  the  footings  of  tliose  columns,  the  footings  on 
the  left  side  to  the  debit  and  the  footings  on  the  right  side  to  the  credit  of  those  accounts.  {See  Cash 
account  below.)  All  items  in  the  Sundries  columns  are  to  be  posted  separately,  as  in  the  ordinary 
Journal  form.  You  may  use  the  Ledger  Folio  (Ledger  page)  instead  of  v/  to  check  the  posting  in  this 
set.     See  L.  F.  column,  page  96.     The  items  in  the  Sundries  columns  only,  require  checking. 

CASH. 


188- 
Jan. 


16 


Sundries, 


3 

1482 

e,| 

188- 
Jan. 

16 

Sundries, 


521    50 


After  you  have  finished  posting,  take  a  Trial  Balance,  and  then  continue  the  same  form  of  Journal 
through  January.  At  the  end  of  January  balance  your  Journal,  as  illustrated  above,  post,  make  out  a 
Balance  Sheet  and  close  the  Ledger.  Your  results  should  agree  with  those  given  at  the  bottom  of 
page  88,  except  the  Net  Gain,  which  should  be  394. 08. 

Present  jour  books,  with  a  proof  of  the  balances,  to  the  teacher  for  inspection. 


QUESTIONS  FOR  REVIEW. 

Page  93. — '  Describe  the  Special  Column  Journal.  '  What  is  the  advantage  of  its  use?  '  How  is 
this  advantage  scoured?  *  AVhat  disposition  is  made  of  items  for  which  no  special  columns  are  provided? 
'  Is  the  number  of  special  columns  limited?  *  LTpon  what  does  the  opening  of  a  special  column  for  any 
particular  item  depend?  '  How  frequently  are  the  items  to  be  footed  and  proved?  *  llow  are  they  to 
be  proved?  •  What  error  is  to  be  particularly  guarded  against?  '"  What  would  be  the  effect  upon  the 
Ledger  if  a  special  column  item  were  extended  to  the  Sundries  column?  Why?  "  If  a  Sundries  column 
item  were  extended  to  a  special  column?    Why? 

Page  98. — "  How  is  the  Journal  balanced?    "  How  is  the  ])osting  done? 


METHOD  OF  BOOK-KEEPING 


ADAPTED   TO   THE   KEQUIREMENTS   OF  THE 


EXECUTOR    OF  A  WILL. 


The  following  set  is  designed  to  illustrate  the  closing  up  of  the  estate  of  a  person  deceased  by  the 
Executor  of  the  Will.  The  Student  is  su])posed  to  be  the  Executor,  and  will  act  as  the  personal 
representative  of  the  deceased.  He  will  take  possession  of  all  property  of  whatever  character,  and, 
after  discharging  all  liabilities,  will  divide  the  remainder  of  the  estate  among  the  legal  representatives 
of  the  deceased,  in  accordance  with  the  the  terms  of  the  Will. 

The  books  to  be  used  are  the  Journal  and  Ledger. 

99 


100 


THEORETICAL    AND   PRACTICAL    BOOK-KEEPING. 


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THEORETICAL    AND    PRACTICAL    BOOK-KEEPING.  161' 

APRIL,   188-. 

1.  You  (Student)  have  been  appointed  Executor  of  the. Will  of  the  late  John  H.  Warner.     The  Will 

provides  that  the  widow  of  deceased,  Eliza  St.  Clair  Warner,  shall  have  one-third  of  all 
property  belonging  to  the  estate,  and  that  the  children,  viz:  John  W.,  Mrs.  Mary  Warner 
Roberts,  William  H.,  Jennie  E.  and  George  S.,  shall  each  receive  one-fifth  of  the  remainder 
of  such  property. 

A  schedule  of  the  real  and  personal  estate  of  the  deceased,  made  by  yourself,  assisted  by  Cornelius 
Crittenden  and  Byron  Rogers,  as  appraisers,  exhibits  as  follows  (ttee  entry  on  paye  100) : 

125  acres  of  land,  including  buildings,  constituting  the  Homestead,  @  90.00  per  acre;  80  acres  of 
land  in  Michigan,  @  15.00;  100  Sheep,  @  2.50;  4  AVork  Horses,  100.00  each;  2  Yearling  Colts, 
40.00  each;  6  Cows,  30.00  each;  5  Hogs,  6.00  each;  Poultry,  estimated  at  25.00;  Harness, 
estimated  at  100.00;  Machinery  and  Utensils,  estimated  at  450.00;  Carriage,  estimated  at 
100.00;  Household  Furniture,  estimated  at  600.00;  Judgment  against  D.  Gray,  dated  Jan. 
16th  last,  74.89;  Interest  accrued  75  days  on  above;  12  Water  Works  6  ^  Bonds,  500.00  each 
at  par;  Interest  accrued  on  sante  from  Jan.  1  last,  3  months;  Note  of  W.  S.  Dunn,  at  90  days 
from  March  1  last,  with  interest,  1500.00;  Interest  accrued  31  days  on  above  note;  Note  of 
A.  B.  Enoch,  at  90  days  from  Feb.  20  last,  with  interest,  225.00;  Interest  accrued  40  days  on 
above  note;  John  Lynch  owes  on  "je,  40.00;  William  Burke  owes  on  "jc,  23.50;  Cash  on  hand, 
125.00;  On  deposit  in  Citizens'  Savings  Bank,  980.00;  Interest  accrued  on  above  deposit  from 
Jan.  1  last,  3  months,  at  5  ^  per  annum. 

2.  You  have  ascertained  that  deceased  was  indebted  to  the  following  persons  in  the  sums  named: 

James  Bryant,  on  account  of  Blacksmithing,  43.50;  A.  B.  Enoch,  Store  account,  79.80; 
Patrick  Maloy,  on  account  of  Ditching,  16.25. 

3.  Deposit  in  Germania  Bank,  cash,  125.00. 

4.  Sell  this  day,  at  auction,  the  following  personal  property:     100  Sheep,  @  2.85  per  head,  to  John 

Martin,  on  his  note  at  3  mos.  with  interest,  endorsed  by  Byron  Devins,  payable  at  Germania 
Bank;  2  Work  Horses,  94.00  and  140.00,  to  Wm.  Gray,  on  his  note  at  3  mos.  with  interest, 
endorsed  by  John  H.  Blj',  payable  at  Germania  Bank;  2  Work  Horses,  102.50  and  110.00,  to 
Jerome  B.  Stevenson  for  cash;  2  Yearling  Colts,  34.00  and  48.00,  to  William  Fenner,  on  his 
note  at  3  mos.  with  interest,  endorsed  by  Calvin  Davis,  payable  at  Germania  Bank;  2  Cows, 
28.50  and  31.00,  to  Ira  McCall  for  cash;  4  Cows,  34.00,  33.00,  29.75  and  41.00,  to  William 
Chappell,  on  his  note  at  3  mos.  with  interest,  endorsed  by  Thos.  Eddy,  payable  at  Germania 
Bank;  5  Hogs,  @  4.50  each,  to  Samuel  N.  Messner  for  cash;  Poultry,  to  Anson  II.  Wells  for 
cash,  24.00. 
Harness,  to  Patrick  Murphy,  on  his  note  at  3  mos.  with  interest,  endorsed  by  M.  B.  Flynn,  payable 
at  Germania  Bank,  for  88.00;  Carriage,  to  Owen  Storrs  for  cash,  98.00;  Farming  Utensils, 
bought  by  John  W.  Warner  and  charged  to  his  account,  415.00;  Household  Furniture,  bought 
by  the  widow  of  deceased  and  charged  to  her  account,  588.50. 

5.  Deposit  in  Germania  Bank,  cash,  410.50. 

6.  Pay  Jas.  Bryant  and  P.  Maloy  in  full  of  account,  by  check  on  Germania  Bank. 

9.    A.  B.  Enoch  pays  his  note  and  interest  to  date  in  cash,  after  deducting  the  amount  due  him  on  "jc. 
10.    Pay  Probate  Judge's  fee,  50.00,  and  Auctioneer's  bill,  15.00,  by  check  on  Germania  Bank. 
Patrick  Murphy  offers  to  pay  his  note  at  its  face,  which  offer  you  accept. 

16.  Sell  the  Water  AVorks  Bonds  to  D.  W.  Powers  for  cash  at  par,  with  accrued  interest  added. 
Deposit  in  Germania  Bank,  cash,  6340.00. 

17.  Collect  amounts  due  from  John  Lynch  and  Wm.  Burke,  in  cash. 

18.  Wm.  H.  Warner  desiring  to  purchase  the  80  acres  of  Michigan  land  at  the  appraised  valuation,  it 

has  been  deeded  to  him  and  charged  to  his  account. 

19.  Have  the  following  interest  bearing  notes  discounted  at  Germania  Bank,  at  8  ^  discount,  and  have 

the  proceeds  credited:  John  Martin's  note,  285.00;  Wm.  Gray's  note,  234.00;  Wm.  Fenner's 
note,  82.00;  Wm.  Chappell's  note,  137.75. 

Note. — Get  the  interest  on  the  face  of  the  notes  from  their  date  to  maturitj"^  at  6  per  cent.,  and  tlien  discount  the 
amount  at  8  per  cent,  for  tlie  time  the  notes  have  yet  to  run,  2  mo.  18  days. 

20.  Mrs.  Mary  Warner  Roberts  takes  the  note  of  Wm.  S.  Dunn  at  its  face,  with  accrued  interest,  to 

apply  upon  her  share  in  the  estate. 
Draw  amount  on  deposit  in  Citizens'  Savings  Bank,  and  deposit  it,  together  with  the  accrued 
interest,  in  Germania  Bank. 


102  THEOEETICAL   AND    PRACTICAL   BOOK-KEEPrSrO. 

* . 

21.    Pay  Jennie  E.  Warner  cash,  50.00. 

23.    John  W.  AVarner  has  determined  to  purchase  the  homestead  farm  at  the  appraised  valuation.    You 

will  charge  it  to  his  account.     Papers  are  to  be  executed  on  the  29th  inst. 
2G.    Messrs.  Rowley  &  Johnston,  attorneys,  have  returned  the  amount  collected  on  the  judgment 

against  D.   Gray,  74.89,  and  interest  to  date,  less  their  charge  for  collection,  10.00,  and 

Sheriff's  fees,  5. 75.     Receive  balance  in  cash. 

27.  Deposit  in  Germania  Bank,  cash,  73.89. 

Note. — You  may  now  post  and  take  a  Trial  Balance  (not  Balance  Sheet),  after  which  close  the  accounts  showing 
losses  and  gains  directly  into  the  Warner  Estate  account. 

28.  Appropriate,  by  check  on  Germania  Bank,  your  fee  as  Executor  of  the  Will,  as  provided  by  law, 

viz:  5  ^  on  the  first  1000.00,  2^  ^  on  the  next  9000.00,  and  1  ^  on  the  balance  of  the  net  credit 
to  the  estate,  23,798.98,  [not  counting  the  liabilities  or  expenses.]  {Debit  Warner  Estate  for 
she  fees. )  J 

Noi-B. — Post  the  above  entry  and  each  entry  hereafter  as  soon  as  it  is  journalized. 

Having  ascertained  the  present  worth  of  the  estate,  as  shown  by  the  difference  in  the  Warner 
Estate  account,  debit  the  Estate  and  credit  Mrs.  Eliza  S.  Warner  her  one-third,  7721.89, 
and  the  children,  John  W.  Warner,  Mrs.  Mary  Warner  Roberts,  Wm.  H.  Warner,  Jennie  E. 
Warner  and  Geo.  S.  Warner,  each  one-fifth  of  the  remainder,  as  provided  by  the  Will. 

29.  John  W.  Warner  has  this  day  executed  a  mortgage  on  the  homestead  farm  for  the  balance  due 

Mrs.  Eliza  S.  Warner  from  the  estate. 
John  W.  Warner  has  executed  a  second  mortgage  on  the  homestead  to  Jennie  B.  Warner,  for  the 
balance  due  from  him  to  the  estate. 

30.  Give  Mrs.  Roberts,  Wm.  H.  Warner,  Jennie  E.  Warner  and  George  S.  Warner  checks  on  Germania 

Bank,  for  amounts  due  them. 

NoTB. — All  of  the  accounts  in  your  Ledger  should  now  balance. 

QUESTIONS   FOR   REVIEW. 

What  does  the  foregoing  set  illustrate?  How  is  an  Executor  appointed?  What  are  his  duties? 
How  are  his  fees  computed?  How  is  the  amount  found  upon  which  they  are  computed?  Why  will 
every  account  balance  at  the  close  ? 


PETTY    LEDGER. 


'  The  following  set  is  designed  to  illustrate  a  method  of  book-keeping  by  which  all  fratisient 
accounts  may  be  kept  without  opening  them  in  the  principal  Ledger. 

'An  auxiliary  Ledger,  called  the  Petty  Ledger,  is  employed,  in  which  all  accounts  are  opened  that 
are  not  likely  to  be  permanent,  actiye  accounts;  and  in  the  principal  or  main  Ledger  an  account  called 
Petty  Accounts  is  opened,  to  represent  these  transient  accounts  and  to  keep  the  main  Ledger  in 
balance. 

'  This  method  saves  space  in,  and  facilitates  taking  a  trial  balance  of,  the  main  Ledger. 

The  books  to  be  used  are  the  Journal,  Bill  Book,  Petty  Ledger  and  Main  Ledger. 

10.3 


104 


THEOliKTICAL    AND    PRACTICAL    BOoKliKEPlNG. 

MAY   1,  188-. 


Commenced  the  Book  and  Stationery  business,  with  the 
following  Eesources: 


Cash, 

Expense, 
E.  W.  Hoag, 

To  Student, 


Mdse. 

To  Fletcher  &  Co. 


11.  C.  Sidway, 
To  Mdse. 


Petty  Accounts, 
To  Mdse. 

Cash, 

To  E.  W.  Hoag, 

Bills  Keceivable, 
To  Mdse. 


Cash, 
To  P.  A. 

Cash, 
To  Mdse. 

Fletcher  &  Co. 
To  Bills  Payable, 


P.  A. 

To  Mdse. 


Mdse. 

To  Barnes  &  Co. 


Atkinson  &  Boyd, 
To  Mdse. 


Cash, 

To  R.  C.  Sidway, 

City  Bank, 
To  Cash, 

Fletcher  &  Co. 
To  City  Bank, 

(Jash, 

To  Mdse. 


On  hand. 

Furniture  and  Fixtures, 
Owes  on  account. 
Investment  as  above. 


Bought  on  account,  per  Invoice, 
No.  1,  on  file, 


3  doz.  Rob.  Arithmetics,  10.00-20.00, 
li  doz.  K.  Grammars,  9.00-13.50, 

3. 
Sold  G.  W.  Getman,  on  <^c,  per  P.  T.. 


To  apply  on  account, 

5. 
Sold  Brown,  per  B.  B.,  . 
20  H.  S.  Dictionaries,  2.25, 


Rec'd  of  G.  W.  Getman,  on  acct., 

6. 
Sales,  per  Ciish  Drawer, 

7. 
Gave  them  note  to  apply  on  account, 
per  B.  B., 


Sold   Marsh  &  Grant,   on  account, 
per  P.  L., 

9. 
Bought  on  account,  as  per  Invoice 
No.  2, 

10. 
10  reams  Foolscap,  2.35-25.50, 
35  M.  Buflf  Envelopes,  1.00-40.00, 


To  apply  on  account, 

11. 
Deposited, 

12. 
Check  to  apply  on  account, 

13. 
Cash  Sales  for  tlic  day, 

Forward, 


CASH 
RECEIPTS. 


1000 


100 


BUNDKIES 
DR. 


SUNDRIES 

CR.    i 


MDSE. 
SALES. 


200 

350 


1550 


28 


648 


33 


80 


50 


648 


80 


;40 


100 


45 


12 


15 


36 


1184 


04 


175 


175 


24 


75 


520 


62 


25 


50 


536 


25 


500 


350 


15 


500 


350 


33 


50 


140 


45 


28 


13 


24 


75 


63 


50 


16 


3924 


30 


3870 


05 


36 


338 


04 


31 


•rHEOKETIOAL    AND    I'KACTlOAL    IJOOK-KJiKl'lNG.  lOo 

MAY,   188-. 

Note. — *  The  form  of  Journal  illustrated  on  page  104,  you  will  observe,  is  provided  with  additional  columns,  in 
which  the  sales  of  Mdse.  and  the  receipts  of  Cash  only  are  to  be  entered,  the  object  being  to  facilitate  posting.  The 
footings  of  these  columns  are  to  be  carried  forward  from  page  to  page  until  the  end  of  the  month,  and  the  totals  then 
posted  to  their  respective  accounts.  Post  the  footing  of  tlie  Cash  Receipts  column  to  the  debit  of  Cash  account,  and 
the  footing  of  the  Mdse.  Sales  column  to  the  credit  of  Mdse.  account.  Rule  the  additional  columns  in  your  Journal,  if 
they  are  lacking. 

1.  Commence  the  Book  and  Stationery  business  with  the  following  Resources  :     Cash  on  hand, 

1000.00;  Furniture  and  Fixtures,  valued  at  200.00;  E.  W.  Hoag,  City  (M.  L.),  owes  on  % 
350.00. 

Note. — Accounts  which  are  to  be  opened  in  the  Petty  Ledger  will  be  indicated  in  tlie  memoranda  by  the  letters 
P.  L.,  and  those  to  be  opened  in  the  Main  Ledger  by  the  letters  M.  L. 

2.  Receive  from  Fletcher  &  Co.,  New  York  {M.  L.),  a  bill  of  Mdse.  bought  on  "{c,  as  \wi-  Invoice  No. 

1,  648.80. 
Sell  R.  C.  Sidway,  Lakeville  (if.  L.),  2  doz.  Robinson  Arithmetic,  @  10.00  doz. ;    U  doz.  Kerl's 
Grammar,  @  9.00. 

3.  Sell  G.  W.  Getman,  City  {P.  L.),  6  R.  Arithmetic,  @  90c.;  3  Civil  Government,  @  1.00.     {J.  ana 

P.L.) 

Note. — Open  an  account  with  Qetman  in  the  Petty  Ledger  before  making  the  journal  entry.    See  form  on  page  106. 
As  a  matter  of  convenience  the  items  are  entered  in  the  Petty  Ledger  and  omitted  from  the  Journal. 

4.  Receive  cash  of  E.  W.  Hoag  on  "jc,  100.00. 

5.  Sell  R.  D.  Brown,  on  his  note  at  10  days,  20  High  School  Dictionary,  @  2.25. 
Receive  cash  of  G.  W.  Getman,  to  apply  on  "jc,  5.00.     {J.,  and  P.  L.) 

6.  Cash  sales,  as  per  Cash  Drawer,  28.12. 

1.    Give  Fletcher  &  Co.  your  note  at  15  days,  to  apply  on  "jc,  175.00. 

Sell  Marsh  &  Grant,  Fairport  {P.  L.),  10  R.  Arithmetic,  @  90c.;   10  K.  Grammar,  @  75c.;  3 
Knight's  Commercial  Law,  @  2.75. 

Note. — Make  the  entry  first  in  the  P.  L.     Give  eacli  account  in  the  Petty  Ledger  onefourtli  of  a  page  space. 

9.    Receive  of  Barnes  &  Co.,  Boston  [M.  L.),  a  bill  of  Mdse.  bought  on  "/;,  as  per  Invoice  No.  2, 
526.25. 

10.  Sell  Atkinson  &  Boyd,  Eastport  {M.  L.),  10  reams  Foolscap,  @  2.25;  25  M.  Bufi  Envelopes,  @  1.60. 
Receive  cash  of  R.  C.  Sidway  on  <yc,  15.00. 

11.  Open  an  account  at  City  Bank  and  deposit  cash,  500.00. 

12.  Give  Fletcher  &  Co.  your  check  on  City  Bank,  to  apply  on  "je,  350.00. 

13.  Cash  sales  of  Mdse.,  as  per  Cash  Drawer,  36.04. 

15.    Give  Barnes  &  Co.  your  check  on  City  Bank,  to  apply  on  cjc,  100.00. 

17.  Receive  cash  of  Marsh  &  Grant,  to  apply  on  "fc,  10.00. 

Sell  R.  C.  Sidway,  15  Civ.  Gov.,  @  1.00;  10  H.  S.  Dictionary,  @  2.25;  25  gro.  D.  Pencils,  @  1.75. 

18.  Receive  cash  for  a  note  due  to-day. 

20.  Accept  Fletcher  &  Co.'s  draft  on  you  at  10  days,  to  apply  on  "fc,  50.00. 

21.  Sell  L.  Ayrault,  Nunda  (P.  L.),  20  reams  Foolscap,  @  2.25;  25  M.  White  Envelopes,  @  1.75. 

22.  Buy  for  cash  a  draft  of  200. 00  on  Ninth  National  Bank,  Boston,  at  ^  ^  exchange.     Remit  the 

draft  to  Barnes  &  Co.,  to  apply  on  "jc. 

23.  Receive  of  Atkinson  &  Boyd,  to  apply  on  "jc,  their  draft  at  1   day's  sight  on  Marcus  Greenfield, 

which  Greenfield  has  accepted,  35.00. 

24.  Sell  L.  &  G.  Freeman,  City  (P.  L.),  25  M.  B.  Envelopes,  @  1.60;  10  reams  Foolscap,  @  2.25. 

25.  Pay  your  note  due  to-day  in  cash. 

36.    Draw  a  draft  at  sight  on  L.  Ayrault,  Nunda,  to  apply  on  "fc,  50.00,  and  deposit  the  draft  in  City 
Bank  to  your  credit,  less  cost  of  collection,  25c.     (J.  and  P.  L. ) 
Buy  of  Walker,  Clinch  &  Co.,  City  {M.  L.),  Mdse.  as  per  Invoice  No.  3,  462.38.     Give  them  your 
check  on  City  Bank,  62.38.     Balance  on  "jc. 

27.  Receive  cash  for  an  acceptance  due  to-day. 

28.  Sell  Atkinson  &  Boyd,  10  K.  Commercial  Law,  @  2.75;   20  R.  Arithmetic,  @  ItOc. ;    15  H.  S. 

Dictionary,  @  2.25.     Receive  in  payment,  their  note  at  15  days,  50.00.     Balance  on  ojc. 

29.  Receive  cash  of  Marsh  &  Grant,  to  balance  "jc. 

30.  Deposit  in  City  Bank,  cash,  300.00. 

Sell  J.  J.  Sidway,  Canton  {P.  L.),  40  gro.  Steel  Pens,  @  1.45;  25  gro.  D.  Pencils,  @  1.75. 

31.  Credit  D.  W.  Clark,  Book-keeper  (P.  L.),  his  salary  for  the  month,  50.00. 


106 


»rafiOftEtlCAL   AND    PRACTICAL    BOOKKEEPmG. 


FORM  OF  PETTY  LEDGER  ACCOUNTS. 
G.  W.  GETMAN,  City. 


188- 

z:^ 

188- 

1 
[ 

May 

3 

C  Rob.  Arith., 
3  Civ.  Gov't, 

90c. 
1.00 

5 
3 

s 

40 

40 

May 

5 

Cash, 

5 

MARSH  &  GRANT,  Fairport. 


188- 
May 


10  Rob.  Arith.,         90c. 

10  K.  Grammar,       75c. 

3  K.  Com'l  Law,    2.75 


188- 

9 

May 

17 

7 

50 

29 

8 

25 

24 

75 

Cash, 


L  AYRAULT,   Nunda. 


L  &  G.  FREEMAN,  City. 


10 
14 


24 


75 


75 


188- 

f 

1 

188-1 

May 

21  ;  20  rms.  Foolscap, 
25M.W.  Env., 

2.25 
1.75 

45 
43 

•  s 

May 

75 

75 

27 

Draft, 

50 

188- 
May 


24 


20  M.  B.  Env., 
10  rms.  Foolscap, 


1.60 

40 

2.25 

22 

6  2 

50 

50 

INVENTORIES,  MAY  31,  188-. 

MERCHANDISE.— Per  Inventory  Book, 1203  88 

EXPENSE.— Furniture  and  Fixtures, 200  00 

You  may  now  rule  and  foot  tlie  Journal  and  post  the  month's  business,  giving  each  account  one- 
fourth  of  a  page  space,  except  Petty  Accounts,  which  will  require  one-half  of  a  i)age.  Post  the  footing 
only  of  the  Cash  Receipts  column  to  the  debit  of  Cash  account,  and  the  footing  of  the  Mdse.  Sales 
column  to  the  credit  of  Mdse.  account,  and  omit  the  debit  items  of  Cash  and  the  credit  items  of  Mdse. 
in  posting  from  the  Journal. 

After  you  have  completed  the  posting,  prove  first  the  Petty  Ledger,  as  explained  and  illustrated 
below. 

The  Petty  Ledger  does  not  balance,  but  may  be  proved  as  follows:  '  Find  the  difference  between 
the  sides  of  the  Petty  Ledger,  and  compare  it  with  the  difference  between  the  sides  of  the  account 
with  Petty  Accounts,  in  the  Main  Ledger;  the  two  differences  should  agree. 

•  The  reason  of  this  is  obvious,  since  for  every  entry  made  in  the  Petty  Ledger  a  corresponding 
amount  was  entered  to  the  same  side  of  the  account  with  Petty  Accounts  in  the  Main  Ledger. 

PETTY   LEDGER,   MAY  31,  188-. 


G.  W.  Getman, 
L.  Ayrault, 
L.  &  G.  Freeman, 
J.  J.  Sidway,     - 
D.  W.  Clark, 


8 

40 

5 

88 

75 

50 

62 

50 

101 

75 

50 

261 

40 

105 

PROOF. 


Petty  Account,s,  Dr. 286  15 

Cr. 129  75 


Balance, 156  40 


Petty  Ledger,  Dr ----- 261  40 

"  "         Cr.  -.- 105  00 


Balance,.- 156  40 


THEORETICAL   AND    PRACTICAL   BOOK-KEfiPfKO.  107 

After  jiroving  the  Petty  Ledger,  make  out  a  Balance  Sheet  from  the  Main  Ledger,  and  close  the 
accounts  showing  losses  and  gains,  preparatory  to  takmg  a  partner  June  1st.  Tlie  results  sliown  by 
your  Balance  Sheet  should  be  as  follows: 


Total  Resources, 2467  56 

"     -Liabilities, 750  05 


SUMMARY,    MAY  31,  188-. 

Total  Gains, 218  26 

"     Losses, 50  75 


Present  Worth,  _._ 1717  51 


Net  Gain, 167  51 


JUNE,   188-. 

1.  Admit  F.  E.  Craigie  as  a  partner,  with  a  cash  investnient  equal  to  your  present  worth. 

2.  Sell  Baker  Bro's,  Eidgeway  (P.  L.)  5  Eob.  Arithmetic,  @  90c.;  10  K.  Grammar,  @  75c.;  5  reams 

Foolscap,  @  2.25. 
Deposit  in  City  Bank,  cash,  1500.00. 
Pay  your  acceptance  due  to-day  in  cash. 

3.  Receive  R.  C.  Sidway's  clieck  on  Farmers'  Bank,  Lakeville,  to  balance  his  "fc. 

4.  Sell  W.  &  E.  Palmer,  Havana  {P.  L.),  25  M.  White  Envelopes,  @  1.75;  25  Civ.  Government,  @ 

1.00;  20  gro.  D.  Pencils,  @  1.75. 
Deposit  Sidway's  check  rec'd  3d  inst.  in  City  Bank,  less  collection,  25c. 

5.  Receive  cash  of  L.  &  G.  Freeman  in  full  of  'yc. 

6.  Pay  D.  W.  Clark,  Book-keeper,  cash  to  apply  on  last  month's  salary,  25.00. 
Note. — Debit  Petty  Accounts  instead  of  Expense.     Sec  entry  May  31. 

7.  Sell  G.  W.  Getman,  20  M.  Buff  Envelopes,  @  1.60;   15  H.  S.  Dictionary,  @  2.25;  10  Com.  Law, 

@  2.75. 

8.  Receive  from  Fletcher  &  Co.,  New  York,  a  bill  of  Mdse.  bought  on  <yc  per  Inv.  No.  4,  268.60. 

9.  Cash  sales,  per  Cash  Drawer,  52.94. 

10.  The  draft  drawn  on  L.  Ayrault,  May  26,  has  been  returned  unpaid.     Protest  fees,  1.25.     Give 

City  Bank  your  check  to  take  up  the  draft,  51.25. 
Note.— Charge  the  fees  to  Ayrault,  it  having  been  agreed  that  you  should  draw  upon  liim  at  tliat  time. 

11.  Receive  cash  of  E.  W.  Hoag  on  %  150.00. 

Give  Walker,  Clincli  &  Co.,  your  note  at  10  days,  payable  at  City  Bank,  to  apply  on  <^,  200.00. 

13.  Sell  R.  C.  Sidwuy,  500  gro.  Crayon,  @  lie;  50  reams  Letter  Paper,  @  2.10. 
Deposit  cash  in  City  Bank,  250.00. 

14.  Receive  cash  of  G.  W.  Getman  on  a(.,  25.00. 

Sell  R.  W.  Howard,  Bluff  Point  {P.  L.),  10  Com.  Law,  @  2.75;  15  M.  Buff  Envelopes,  @  1.60; 
12  K.  Grammar,  @  75c. 

15.  Receive  cash  for  a  note  due  to-day. 
Cash  sales,  per  Cash  Drawer,  21.50. 

16.  Sell  G.  W.  Getman,  10  reams  Letter  Paper,  @  2.10;  200  gro.  Crayon,  @  lie. 

Buy  of  Walker,  Clinch  &  Co.,  Mdse.  per  Invoice  No.  5,  689.32.     Give  them  in  payment,  check  on 
City  Bank,  289.32:  your  note  at  60  days  for  balance,  payable  at  City  Bank. 

17.  Receive  from  Baker  Bro's,  a  Postal  Money  Order,  to  apply  on  "/c,  10.00. 

18.  Buy  at  City  Bank,  by  check,  a  draft  on  the  Ninth  National  Bank  of  Boston,  226.25,  at  i  ^ 

exchange,  and  remit  the  draft  to  Barnes  &  Co.,  to  balance  °/c. 

19.  Transfer  G.  W.  Getman's  account  to  the  Main  Ledger,  it  having  jjroyed  to  be  a  permanent  and 

active  account. 

Note.—'  Close  the  account  in  the  P.  L.     Say,  on  the  credit  side,  Bal.  to  M.  L.     Then  malie  an  entry  in  tlie  Journal : 
G.  W.  Getman,  To  Petty  Accounts. 

20.  Receive  of  Atkinson  &  Boyd,  their  note  at  45  days,  to  balance  "fc,  56. 75. 
Buy  of  Stein  &  Co.,  City  (/".  L.),  one  Show  Case  for  Store,  35.00. 

21.  Receive  from  W.  &  E.  Palmer,  to  apply  on  "fc,  their  sight  draft  for  50.00  on  Farley  &  Ferguson, 

which  F.  &  F.  pay  by  tlieir  check  on  Commercial  Bank. 
Sell  Findley  &  Morris,  Groveland  {P.  L.),  5  gro.  Steel  Pens,  @  1.45;    10  R.  Arithmetic,  @  90c. 

22.  Student  draws  cash  for  private  use,  50. 00. 


108 


THEORETICAL    AND    PRACTICAL  BOOK-KEEPING. 


22. 
23. 
24. 


25. 

26. 
27. 
28. 
29. 
30. 


Sell  Atkinson  &  Boyd,  25  K.  Com.  Law,  @  2.75. 

Receive  cash  of  L.  Ayrault  to  balance  «ifc,  90.00. 

Your  note  due  to-day  at  City  Bank  has  been  charged  to  your  account. 

D.  W.  Clark  draws  balance  of  last  month's  salary  in  cash,  25.00. 

Receive  from  Barnes  &  Co.,  a  bill  of  Mdse  bought  on  ojc,  per  Invoice  No.  6,  822.48. 

Sell  Alfred  Carter,  Newport  (P.  L.),  20  reams  Letter  Paper,  @  2.10;  25  M.  White  Envelopes, 

1.75.     Receive  in  payment,  cash,  45.00.     Balance  on  "jc. 
Receive  cash  of  J.  J.  Sid  way  on  <5fc,  58.00. 

Sell  Frank  Siddons,  City  {P.  L.),  1  Com.  Law,  3.00;  1  R.  Arithmetic,  1.00. 
Pay  Fletcher  &  Co.'s  sight  draft  on  you  by  check  ou  City  Bank,  73.80. 
Sell  G.  W.  Uetman  {M.  L.),  25  Civ.  Government,  @  1.00;  10  Com.  Law,  @  3.75. 
F.  E.  Craigie  draws  for  private  use,  by  check  on  City  Bank,  50.00. 
Give  D.  W.  Clark  credit  for  his  month's 'salary,  50.00. 


INVENTORIES,   JUNE   30,  188-. 

MERCHANDISE.— Per  Inventory  Book, 2453  38 

EXPENSE,— Furniture  and  Fixtures, 235  GO 

Rule  and  foot  the  Journal  and  post  the  month's  business.  Remember  that  the  footings  only  of 
the  Cash  Receipts  and  Mdse.  Sales  columns  need  be  2)osted.  After  you  have  completed  the  lasting, 
prove  the  Potty  Ledger,  as  instructed  for  last  month.  The  accounts  in  the  Petty  Ledger  need  not  be 
closed.     Make  out  a  Balance  Sheet  and  close  the  accounts  in  the  Main  Ledger. 

Net  Gain  for  the  month, ' 202  72 

Balance  of  Petty  Accounts, 147  25 

*  Another  method  of  keejiing  transient  accounts  is  to  open  in  the  Main  Ledger  an  account  called 
"  Miscellaneous  Accounts,"  or  some  other  appropriate  title,  under  which  all  accounts  not  likely  to  be 
permanent,  active  accounts  may  be  placed,  instead  of  keeping  them  in  a  Petty  Ledger,  as  illustrated 
below. 

MISCELLANEOUS  ACCOUNTS. 


188- 

188- 

Mav 

3 

G.  W.  Getman, 

8 

40 

May 

5 

7 

Marsh  &  Grant, 

24 

75 

a 

17 

21 

L.  Avrault, 

88 

75 

({ 

27 

24 

L.  &  G.  Freeman, 

62 

50 

27 

L.  Ayrault,  Bal. 

38 

75 

30 

J.  J.  Sidway, 

101 

75 

June 

26 

Cash,  ,5. 

Cash.  10;  May  29,  14.75 

Draft,  50;  Bal.  38.75 


Cash, 


24 

88 


58 


75 
75 


•  You  will  observe  by  the  above  form  that  the  space  occupied  by  each  account  is  one  line  only. 
'°  When  an  account  is  settled,  the  credit  is  entered  on  the  line  directly  opposite  the  debit,  thus  showing 
the  account  balanced.  "  When  an  account  is  not  paid  in  full  at  one  payment,  the  account  may  be 
closed  and  the  balance  unpaid  transferred  to  a  new  line,  or  the  payments  may  be  short  extended,  as 
shown  above.  It  is  sometimes  desirable  to  keep  "Misc.  Accounts  Receivable"  and  "  Misc.  Accounts 
Payable." 

Hand  to  the  teacher,  on  a  slip  of  paper,  a  proof  of  the  balances  brought  down  in  closing  the 
Ledger;  also  present  your  books  for  inspection. 


QUESTIONS  FOR  REVIEW. 

Page  103. — ' AVhat  docs  the  Petty  Ledger  set  illustrate?  'Describe  the  method.  'What  are  the 
advantages  to  bo  derived  from  its  use? 

Page  105. — '  What  advantage  is  derived  in  this  set  from  using  an  additional  column  for  Mdse.  sales? 

Page  106. — '  How  is  the  Petty  Ledger  proved?    '  Explain  the  reason  for  it. 

Pago  107. — '  What  entry  is  made  to  transfer  an  account  from  the  Petty  Ledger  to  the  Main  Ledger.'' 

Page  108. — 'What  other  form  may  be  used  for  keeping  transient  accounts  to  save  space  in  the 
Main  Ledger?  "  By  this  form,  how  much  space  does  each  transient  account  occupy?  '°  When  an  account 
is  settled,  where  is  the  credit  entry  made?  "  If  an  account  is  not  paid  in  full  at  one  payment,  how  is 
the  entry  made? 


CASH    METHOD. 


'  The  method  illustrated  in  tlio  following  set  combines  tlie  Day  Book,  Journal  and  Cash  Book  in 
one  book,  called  tlie  Cash  Journal,  or  simply  Journal,  in  which  book  all  entries  are  to  be  made,  whether 
cash  forms  any  part  of  the  transaction  or  not. 

'  This  form  of  book-keeping  is  best  adapted  to  a  business  in  which  the  transactions  are  mainly  for 
cash. 

"  The  principal  advantages  of  the  method  are,  that  it  employs  a  less  number  of  books,  and  saves 
time  and  labor  in  posting  cash. 

RULES  FOR  CASH   METHOD. 

Decide  what  the  journal  entry  would  be  for  the  transaction  in  the  ordinary  form,  then: 
First. — *  If  Cash  be  tlie  only  debit,  enter  all  of  the  credit  items  on  the  left  side,  which  debits 
Cash. 

Second. — *lf  Cash  be  the  only  credit,  enter  all  of  the  debit  items  on  the  right  side,  which  credits 
Cash. 

Third. — "If  the  entry  consists  of  several  debits  and  credits,  one  of  whicli  is  Cash,  leaving  out  the 
Cash,  enter  all  the  debits  (m  the  right  side,  which  credits  Cash,  and  enter  all  the  credits  on  tlie  left 
side,  which  debits  Cash.     The  difEerenco  will  show  the  cash  received  or  paid  out. 

Fourth. — '  If  no  Cash  is  involved  in  the  transaction,  enter  the  credits  on  the  left  side  and  the 
debits  on  the  right  side.  The  footings  of  the  two  sides  will  thus  be  increased  ecjually,  and  the  balance 
of  cash  will  remain  unchanged. 

The  books  to  be  used  in  this  set  are  the  Cash  Journal  and  Ledger. 

109 


110 


THEORETICAL    AND    PUACTICAL    JiOOK-KEEPING. 


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112 


THEOKETICAL    AND    PRACTICAL    BOOK- KEEPING. 


MONDAY,  JULY  5,  188-. 

Student  and  E.  A.  Wooden  form  a  copartncrsliip  to  engage  in  business  as  private  Bankers  and 
Brokers,  in  accordance  witli  cojjartnership  articles  executed  this  day.  The  gains  and  losses  are  to  b« 
shared  in  jiroportion  to  the  investment.  • 

Student  invests  cash,  30,000. 

Make  the  entry  on  the  left  side  of  the  Journal,  which  credits  Student  and  debits  Cash.     See  form  on  page  110. 

E.  A.  Wooden  invests  cash,  30,000.     {Same  as  previous  entry.) 

Remit  by  express,  to  Bank  of  Commerce,  New  York,  for  your  credit,  cash,  15,000. 

Make  the  entry  on  the  Hght  side  of  the  Journal,  wliich  debits  Bank  of  Commerce  and  credits  Cash. 

Receive  cash  of  H.  E.  Sankey  on  deposit,  2000. 

Make  the  entry  on  the  Uft  side,  which  credits  Sankey  and  debits  Cash. 

Remit  by  express,  to  Merchants'  Bank,  Boston,  for  your  credit,  cash,  10,000. 
Entry  on  rigU  side  of  Journal. 

Pay  H.  E.  Sankey's  check  on  you  in  cash,  500. 
Entry  on  right  side,  which  debits  Sankey  and  Credits  Cash. 
Receive  cash  of  J.  W.  Gardner  on  deposit,  3000.00. 

Discount  for  C.  G.  Teall  a  note  made  by  R.  N.  Smith,  3500.00.  Discount,  9.60.  Pay  him  the 
proceeds  in  cash,  2490.40. 

Enter  Bills  Receivable,  2500,  on  the  right  side  of  the  Journal,  which  debits  Bills  Receivable  and  credits  Cash  2500. 
Then  enter  Discount,  9.60,  on  the  left  side,  which  credits  Discount  and  debits  Cash  9.60.  Cash  having  been  thus  credited 
2500  and  debited  9.60,  the  net  credit  to  Cash  is  2490.40,  as  shown  by  the  difference,  the  actual  amount  of  cash  paid  out. 

Pay  J.  W.  Gardner's  check  on  you  in  cash,  300.00. 

Pay  express  charges  on  remittances  to  New  York  and  Boston  in  cash,  3.50. 


The  Journal  is  now  to  be  balanced  for  the  day,  as  shown  on  pages  110-111.  '  It  will  be  apparent 
that  the  footings  of  the  Journal  cannot  exhibit  the  actual  amount  of  cash  received  and  disbursed,  since 
in  many  of  the  entries  a  part' only  is  cash,  and  in  others  no  cash  whatever  is  involved. 

'  The  footing  of  the  left  side  of  the  Journal  represents  the  total  credits  of  the  business,  except  the 
credit  of  cash;  "the  footing  of  the  right  side  the  total  debits  of  the  business,  except  the  debit  of  cash; 
"  the  difference  between  these  footings  must  therefore  exliibit  the  excess  of  cash  received  or  paid  out 
during  the  day.  "  The  balance  for  the  previous  day  being  added  to  the  footing  of  the  left  side  of  the 
Journal,  the  difference  between  the  sides  will  then  show  the  cash  on  hand. 

After  balancing  the  Journal,  post  the  day's  business.  Give  each  account  one-fourth  of  a  page 
space.  "  In  posting,  credit  all  of  the  items  upon  the  left  side,  and  debit  cash  with  the  total  of  these 
items.  The  debit  and  credit  sides  of  the  Ledger  are  thus  kept  equal.  Debit  all  of  the  items  upon 
the  right  side,  and  credit  Cash  with  the  total  of  these  items.  Here  again  equal  debits  and  credits  are 
posted  to  the  Ledger.  , 

You  may  omit  the  explanations  from  the  Ledger  in  posting  this  set.  The  work  of  Monday  and 
Tuesday  is  posted  in  full  below. 

STUDENT. 


188- 
July 

5 

110 


20000 


E.  A.  WOODEN. 


188- 
July 


111 

500 

II  188- 

5 

110 


30000 


H. 

E.   SANKEY. 

188- 

188- 

Julv 

6 

111 

500 

July 

0 

6 

111 

356 

45 

6 

110 
110 


3000 
994 


35 


THEORETICAL    AND    PKAOTIOAL    BOOK-KEEPING. 

J.  W.  GARDNER. 


113 


188- 

188- 

~  ' 

July 

5 

111 

300 

July 

5 
6 

- 

iiol 

110 

3000 
600 

DISCOUNT. 


f 

188- 

1 

July 

5 
6 

110 
110 

9 
5 

60 

75 

CASH. 


188- 

188- 

Jiily 

5 

110 

55009 

60 

July 

5 

111 

28302 

50 

6 

110 

13955 

6 

111 

9106 

45 

BANK  OF  COMMERCE, 


188- 
July 


111 

15000 

188- 
July 

6 

110 


2000 


MERCHANTS'   BANK. 


188- 
Jnly 


111 


10000 


188- 
July 


110 


6250 


BILLS   RECEIVABLE. 


188- 
July 


111 
111 

2500 
2000 

EXPENSE. 


188- 
July 


111 


50 


EXCHANGE. 


188- 
Jiily 

6 

110 


BILLS  PAYABLE. 


I  188- 


110        500 


N.  Y.  C.  &  H.  R.  R.   R,  STOCK. 


188- 
July 


111 


6250 


188- 
July 


110 


2600 


114 


THEORETICAL    AND    PRACTICAL    BOOK  KEEPING^ 


TUESDAY,  JULY  6,  188-. 
Pay  H.  E.  Sankey's  check  in  cash,  356.45. 

Sell  M.  r.  Eoynolds  your  sight  draft  on  Bank  of  Commerce,  2000,  at  i^  exchange,  5.00.  Eeceive 
cash,  2005.00. 

Credit  Bank  of  Commerce  and  Exchange  on  tlie  left  side  of  the  Journal,  whicli  debits  Cash. 

Buy  of  Cook  &  Co.,  50  shares  N.  Y.  C.  &  H.  K.  E.  R.  Stock,  @  125.00  per  share.  Pay  for  same 
by  check  on  Merchants'  Bank. 

Dcl)it  K.  Y.  C.  &  H.  R.  R.  R.  Stock  on  the  right  side  of  the  Journal,  which  credits  Cash.  Credit  Merchants'  Bank 
on  the  left  side,  which  debits  Cash.  The  amount  of  0250  having  thus  been  entered  on  each  side  of  the  Journal,  the 
balance  of  Cash  remains  unchanged  by  this  entry. 

Receive  cash  of  J.  W.  Gardner  on  deposit,  600.00. 

Discount,  for  H.  E.  Sankey,  Benj.  W.  Craig's  acceptance,  2000.00.  Discount  off,  5.75.  Pay  him 
cash,  1000.00,  and  place  the  balance  to  his  credit.     {See  Rule  Third,  on  paije  109.) 

Accept  11.  Sibley's  draft  on  E.  A.  Wooden,  for  private  <^c,  500.00.     {See  liule  Fourth,  page  109.) 
Sell  20  shares  K  Y.  C.  &  II.  R.  R.  R.  Stock,  @  130.00  per  share,  and  receive  cash. 

You  may  now  balance  the  Journal  and  post  the  day's  work,  as  instructed  for  yesterday.  "  You 
will  observe  that  the  cash  on  hand  for  Monday  is  carried  to  the  second  column  of  the  Journal  in 
bringing  the  balance  down  on  Tuesday,  "so  as  to  avoid  including  it  in  the  footing  of  the  items  of 
Tuesday's  business;  otherwise  Cash  account  would  be  again  debited  for  the  net  receipts  of  the  previous 
day. 

WEDNESDAY,  JULY  7,  188-. 

Remit  cash  to  Bank  of  Commerce,  New  York,  by  express,  10,000.     {Rule  Second,  page  109.) 

Receive  cash  of  H.  E.  Sankey,  on  deposit,  375.00.     {Rule  First, page  109.) 

Pay  J.  W.  Gardner's  check  in  cash,  76.25.     {Rule  Second,  page  109.) 

Sell  10  shares  N.  Y.  C.  &  H.  R.  R.  R.  Stock  for  cash,  @  136.00.     {Rule  First,  page  109.)  ■ 

Discount,  for  Rob't  C.  Foy,  Wells  Bro's  note,  800.00.  Discount  off,  3.27.  Pay  proceeds  in  cash, 
796.73.     {Rule  Thira,  ])age  109.) 

Buy  for  cash,  25  shares  Park  Bank  Stock,  @  145.00.     (Rule  Second,  page  109.) 

Receive  cash  of  H.  C.  Griffiths,  on  deposit,  1500.00. 

Sell  Geo.  Archer  your  sight  draft  on  Bank  of  Commerce,  1000.00.  Exchange  \  ^,  2.50.  Receive 
cash,  1002.50.     {Rule  First,  page  109.) 

Discount,  for  J.  W.  Gardner,  Caring  &  Reed's  note,  600.00.  Discount  off,  1.51.  Proceeds  placed 
to  his  credit,  598.49.     {Rule  Fourth,  page  109.) 

Pay  Express  charges  on  remittance  to  Bank  of  Commerce  in  cash,  1.75. 

You  may  now  balance  your  Journal.  There  should  be  eight  entries  on  the  left  side  and  six  on  the 
right  side.  The  balance  of  cash  on  hand  should  be  20,293.42.  Post  the  day's  business,  and  then  take 
u  Trial  Balance.     If  correct,  it  should  correspond  with  the  following: 


TRIAL  BALANCE,  JULY  7,  188- 


Student,      .        .        -        - 
E.  A.  Wooden, 
H.  E.  Sankey,      -        -        - 
J.  W.  Gardner,         -        -        - 
Discount,     -        -        -        - 

Cash, 

Bank  of  Commerce,     - 
Merchants'  Bank,     -        -        - 
Bills  Receivable,  -        -        - 

Expense, 

Exchange,    -        -        -        - 
Bills  Payable,  -        -        -        - 
N.  Y.  C.  &  H.  R.  R.  R.  Stock, 
H.  C.  Griffiths,     ■  '  - 
Park  Bank  Stock,     ■    - 


20000 

500 

30000 

856 

45 

3369 

376 

25 

4198 
20 

72805 

37 

52511 

25000 

3000 

10000 

6250 

5900 

4 

25 

7 
500 

6250 

3960 
1500 

3625 

125317 

32 

I25317J 

25 
49 
13 
95 


50 


THEORETICAL    AND    PKACTICAIi    BOOK-KEEPINU.  115 

THURSDAY.  JULY  8,  188-. 

Sell  10  shares  Park  Bank  Stock  for  cash,  @  150.00. 

Pay  H.  C.  Griffitlis'  draft  on  you,  500.00,  less  discount,  2.25,  by  check  on  Merchants'  Bank,  497.75. 
{Rule  Fourth,  page  109.) 

Eeceive  cash  on  deposit  of  E.  J.  Howard  &  Co.,  1275.00. 

Buy  of  Reed  &  Hill,  60  shares  N.  Y.  C.  &  II.  R.  R.  R.  Stock,  @  124^.  Pay  for  same  by  check  on 
Merchants'  Bank,  3000.00.     Balance  in  cash.     {Riile  Third,  page  109.) 

Student  appropriates  cash  for  private  use,  500. 00. 

Sell  J.  W.  Gardner  your  sight  draft  on  Bank  of  Commerce,  New  York,  3500.00,  nt  ^^  exchange. 
Receive  his  check  on  you  in  payment.     {Rule  Fourth,  page  109.) 

Pay  sundry  items  of  Telegraphing  in  cash,  1.45. 

Receive  cash  on  deposit  of  H.  E.  Sankey,  2350.00. 

Pay  your  acceptance  of  6th  inst.  in  cash,  500.00. 

Draw  a  sight  draft  on  Bank  of  Commerce,  7500.00,  and  remit  it  to  Merchants'  Bank  for  your 
credit.     {Rule  Fourth,  page  109.) 

Pay  Howard  &  Co.'s  check  in  cash,  100.00. 

Discount  for  J.  W.  Gardner  his  accommodation  note,  endorsed  by  Lee  &  Parker,  payable  at  Bank 
of  Commerce,  New  York,  1500.00.     Discount  off,  15.75.     Proceeds  to  his  credit. 

Sell  20  shares  N.  Y.  C.  &  II.  R.  R.  R.  Stock  to  Morgan  &  Reeves,  @  126^.  Receive  in  payment, 
their  check  on  Fourth  National  Bank,  New  York,  and  remit  same  to  Bank  of  Commerce,  for  your 
credit. 

Balance  your  Journal,  and  post  tlio  day's  business.  There  should  be  twelve  entries  on  the  left 
side,  and  ten  on  the  riglit  side.     The  cash  on  hand  should  be  19861.97. 

FRIDAY,  JULY  9,  188-. 

Receive  cash  of  R.  N.  Smith,  for  his  note,  2500.00. 

Accept  E.  J.  Howard  &  Co.'s  draft,  in  favor  of  H.  C.  Griffiths,  to  apply  on  %  850.00. 

Sell  II.  C.  Griffiths,  your  sight  draft  on  Bank  of  Commerce,  1500.00,  at  i  ^  exchange.  Receive  in 
payment,  cash,  800.00;  his  check  on  you  for  the  balance. 

Receive  cash  of  J.  W.  Gardner,  on  deposit,  205.50. 

Sell  Wm.  Smith,  15  shares  Park  Bank  Stock,  @  150.00.  Receive  cash,  550.00,  and  his  note  for 
the  balance. 

Pay  H.  E.  Sankey's  check  in  cash,  876.44. 

Receive  on  deposit,  of  0.  B.  Welch,  cash,  500.00,  and  issue  him  a  Certificate  of  Deposit.  {Credit 
Certificate  of  Deposit  instead  of  0.  B.  Welch.) 

Have  J.  W.  Gardner's  note  for  1500.00,  rec'd  yesterday,  re-discounted  at  Bank  of  Commerce. 
Discount  off,  10.25.     Proceeds  to  your  credit. 

Receive  cash  of  H.  C.  Griffiths,  on  deposit,  200.00. 

Protest  Caring  &  Reed's  note,  600.00,  rec"d  7tli  inst.,  for  non-payment.  Pay  the  Notary  Public's 
fees  in  cash,  1.35.     {Debit  Protested  Paper,  601.35.  and  credit  Bills  Receivable,  600.00.) 

Sell-  H.  E.  Sankey  40  shares  N.  Y.  C.  &  H.  R.  R.  R.  Stock,  @  138.  Receive  his  check  on  you, 
3120.00,  and  his  check  on  Chemical  National  Bank,  New  York,  for  the  balance. 

Receive  cash  of  E.  J.  Howard  &  Co.,  on  deposit,  2500.00. 

Receive  cash  of  Wells  Bro's,  for  their  note,  800.00,  and  interest  on  same,  4.25. 

Balance  your  Journal  and  post  the  day's  business.     Cash  on  hand,  29103.93. 

SATURDAY,  JULY  10,  188-. 

Eeceive  cash  on  deposit  of  E.  J.  Howard  &  Co.,  275.00. 

Discount,  for  L.  D.  Briggs,  Alonzo  Stebbins'  note,  890.00.  Discount  off,  17.80.  Give  him  draft 
on  Bank  of  Commerce  for  500.00,  at  :|^^  exchange,  and  pay  liim  the  balance  of  the  proceeds  in  cash. 

Pay  H.  E.  Sankey's  check  in  cash,  317.28. 

Buy  100  shares  Western  Union  Telegraph  Stock,  @  98i.  Give  in  payment,  Wm.  Smith's  note, 
rec'd  yesterday,  1700.00,  less  discount,  12.75;  your  check  on  Merchants'  Bank,  6000.00,  and  cash  for 
the  balance. 

J.  W.  Gardner,  for  whom  you  discounted  Caring  &  Reed's  note,  protested  yesterday,  takes  up  th^ 
note  by  his  check  on  you,  601.35. 


116  THEORETICAL    AND    PRACTICAL    BOOK-KEEPING. 

Receive  cash  of  IT.  E.  Sankey,  on  deposit,  2000.00.  Issue  him  a  Certificate  of  Deposit  for  1000.00, 
and  place  the  bahince  to  his  credit. 

Sell  H.  C.  Griffiths,  50  shares  W.  U.  Telegraph  Stock,  @  lOl^J.  Eeceive  in  payment,  your 
acceptance  of  yesterday  in  his  favor,  850.00,  less  discount,  11.83;  a  sight  draft  on  Importers  and 
Traders'  Bank,  New  York,  1648.84;  his  check  on  you,  496.25;  and  currency  for  the  balance. 

Eeceive  cash  of  J.  W.  Gardner,  on  deposit,  1750.00. 

Remit  to  Bank  of  Commerce,  for  your  credit,  the  check  on  Chemical  National  Bank  rec'd  yester- 
day, 2000.00,  and  the  draft  on  Importers  and  Traders'  Bank  rec'd  to-day,  1648.84. 

Sell  for  cash,  25  shares  W.  U.  Telegraph  Stock,  @  lOOi 

Benj.  W.  Craig  pays  his  acceptance  rec'd  6th  inst.,  2000.00,  and  interest  on  same,  6.00,  as  follows: 
His  check  on  Monroe  Savings  Bank,  1000.00;  your  Certificate  of  Deposit  issued  yesterday  to  0.  B. 
Welch,  500.00;  and  currency  for  the  balance. 

Balance  your  Journal.  Cash  on  hand,  34350. 69.  After  posting  the  day's  business,  make  a  Balance 
Slieet  and  close  the  Ledger. 

INVENTORIES,  JULY  10,  188-. 

20  shares  N.  Y.  C.  &  H.  R.  R.  R.  Stock, @  134^ 

25       "      W.  U.  Telegraph  "       @     98| 

Net  Gain  of  Firm,  754.31.     Present  Worth  of  Firm,  49,754.31. 

Note. — Remember,  in  making  the  Summary  and  in  closing  tlie  Loss  and  Gain  account,  that  the  Net  Gain  is  to  be 
shared  by  the  proprietors  in  proportion  to  tlieir  investments.  Hand  to  the  teacher  a  proof  of  the  balances  brought  down 
in  closing  the  Ledger.    Also  present  your  books  for  inspection,  and  be  prepared  upon  the  following. 

QUESTIONS  FOR  REVIEW. 

Page  109. — '  Define  the  Cash  Method.  '  To  what  kind  of  business  is  it  best  adapted?  '  What  are 
its  principal  advantages?  *  For  transactions  in  which  Cash  is  the  only  debit,  how  is  the  entry  to  be 
made  in  the  Cash  Journal?  'How  if  Cash  is  the  only  credit?  'How  if  there  are  several  debits  and 
credits,  one  of  which  is  Cash?    '  How  if  no  Cash  enters  into  the  transaction? 

Page  112. — *  Why  do  not  the  footings  of  the  Journal  show  the  cash  received  and  disbursed?  'What 
does  the  fooling  of  the  loft  side  represent?  "The  right  side?  "  What  will  the  difEerence  between 
these  footings  represent?  "How  is  the  balance  of  cash  on  hand  found?  "Explain  the  manner  of 
posting  and  how  tlie  Ledger  is  kept  in  balance. 

Page  114. — "  In  bringing  down  the  balance  of  the  previous  day,  to  which  column  is  it  carried? 
"  Why? 


SHIPPING  AND  COMMISSION. 


'  This  set  is  designed  to  illustrate  a  general  business  in  shipping  property  to  and  rcceiTing  property 
from  other  parties,  to  be  sold  on  commission.  The  same  principles  are  involved  as  explained  and  illus- 
trated on  pages  55-57. 

'  In  addition  to  the  Journal,  a  Commission  Sales  Book  and  Cash  Book  are  to  be  kept  as  '  principal 
books.  *  Those  entries  only  which  pertain  to  consignments  are  to  be  made  in  the  Sales  Book.  '  Entries 
involving  cash  are  to  be  made  in  the  Cash  Book.     "All  other  entries  are  to  be  made  in  the  Journal. 

The  simpler  forms  only  of  Commission  Sales  Book  and  Cash  Book  are  illustrated  in  this  set. 

Special  columns  may  sometimes  be  profitably  introduced  in  these  books,  and  when  found  advan- 
tageous, they  can  easily  be  added  to  meet  the  requirements  of  any  particular  branch  of  the  Commission 
business. 

117 


118 


THfiOliKriCAL   AND    PKAUl'lUAL    BOOK-KEEPING. 


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THEORETICAL   AND    PRACTICAL   BOOK-KEEPING. 


119 


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120 


THEORETICAL    AND    PRACTICAL    BOOK  gEEPli^^. 

CASH    BOOK. 

SEPTEMBER,   188-. 


Sept. 

1 
8 
9 

n/ 

CASH                                  TO                             8UNDRIK8. 

Student,                                  Investment, 
Mdse.                                       50  bbls.  Apples, 
M.  B.  Steele,                         On  account, 
Foster  Bro's  Consignment,    200  bu.  K.  Wheat, 

Sept. 

11 

-3 

Balance, 

2.35 


3500 

112 

50 

80 

274 

50 

3967 

3967 

3628 

25 

JOURNAL 
SEPTEMBER   3,   188- 


n/ 


Mdse. 

To  Bills  Payable, 
Welch  Bro's, 


Ship't  to  L.  Coleman, 

Bay  View. 
To  Mdse. 
Cash, 


Bo't  of  Welch  Bro's, 

500  bbls.  Apples,  2. 

Gave  them  note  at  10  days. 
Balance  on  account, 


Shipped  him,  to  be  sold  on  my 

account, 
350  bbls.  Apples,  2. 

Cartage  on  same. 


1000 


505 


600 
400 


500 
5 


LEDGER. 

STUDENT. 


188- 
Sept. 


Cash, 


3500 


188- 
Sept. 


Sundries, 


MERCHANDISE. 


1000 


188- 
,  Sept. 


Cash, 

Ship't  to  L.  C. 


112 
500 

at  3 


50 


M.   B,  STEELE. 


188- 
Sept. 

3   Hamlin's  Con. 
10 

180 

775 

188- 
Sept. 

9 

Cash, 

80 

188- 
Sept. 


Cash, 


EXPENSE. 


18 


75 


MEOEETICAL    ANb   PRACTICAL   B00K;-KEEP1N&. 


m 


CASH    BOOK. 

SEPTEMBER,   18i 


188- 
Sept. 


2 
3 
5 
6 
10 


Hamlin's  Consignment, 

Expense, 

Shi})'t  to  L.  Coleman, 

Foster  Bro's  Consignment, 

Welch  Bro's, 

Balance, 


Freight, 
Office  Books, 
Cartage, 
Freight, 
On  account. 

On  hand. 


C5 

18 

5 

50 

200 


70 


338 
3638 


3967 


75 
25 


LEDGER. 

WELCH   BROS. 


188- 
Sept. 


10 


Cash, 


200 

188- 
Sept. 

3 

Mdse. 


400 


STORAGE. 


188- 
Sept. 


Hamlin's  Con. 


10 


COMMISSION. 


1 

1  188- 
Sept. 

6 

Hamlin's  Con. 


24 


WM.  D.  HAMLIN. 


1 

1  188- 
Sept. 

/ 

Hamlin's  Con. 

377 

76 

/ 

HOYT  &  EATON. 

188- 
Sept. 

6 

Hamlin's  Con. 

282 

BILLS  PAYABLE. 


188- 
Sept. 


Mdse. 


.600 


SHIPMENT  TO    L.  COLEMAN,   Bay  View. 


188- 
Sept. 


Sundries, 


505 


122  THEORETICAL    AND   PRACTICAL    UOOK-KEfiPING. 

SEPTEMBER,  188-. 

1.  Commence  a  general  Shipping  and  Commission  Business,  inresting  cash,  3500.00.     (C.  B.) 

2.  Receive  from  Wm.  D.  Hamlin,  Laporte,  to  sell  on  his  account,  1000  bu.  White  Oats.     Pay  Freight 

on  same  in  cash,  65.00. 

Note. — Enter  in  Sales  Book  and  Cash  Book,  and  check  the  entries.  See  form  of  Sales  Book  on  pages  118-119,  form 
of  Cash  Book  on  pages  120-121.  Give  each  Consignment  one-third  of  a  page  space  in  the  Sales  Book.  Cash  is 
chec^ked  in  the  Sales  Book  and  omitted  in  posting,  because  the  entry  in  the  Cash  Book  credits  Cash;  and 
Hamlin's  Consignment  is  checked  in  the  Cash  Book  and  omitted  in  posting,  because  the  entry  in  the  Sales  Book 
debits  Hamlin's  Consignment;  otherwise  these  amounts  would  be  posted  twice.   » 

3.  Sell  M.  B.  Steele,  on  <^c,  from  Hamlin's  Consignment,  400  bu.  W.  Oats,  @  45c.     (^S".  B.) 

Note. — Making  this  entry  on  the  right  hand  side  of  the  Sales  Book  credits  Hamlin's  Consignment  and  debits  M.  B. 
Steele,  same  as  in  the  Cash  Method. 

Buy  of  Welch  Bro's,  500  bbls.  Apples,  @  3.00.     Give  them  in  payment,  your  note  at  10  days, 

600.00.     Balance  on  (^c.     (/.) 
Pay  cash  tor  set  of  Office  Books,  18.75.     {C.  B.) 

5.  Ship  L.  Coleman,  Bay  View,  to  be  sold  on  your  account,  250  bbls.  Apples,  @  2.00.     Pay  Cartage 

on  same  in  cash,  5.00.     {J.  and  C.  B.) 

Note. — Check  Cash  in  the  Journal  and  Ship't  to  L.  Colemau  !"  the  Ca.sh  Book.  For  explanation  see  note  under 
Sept.  2d,  above. 

6.  Receive  from  Foster  Bro's,  Carthage,  to  sell  on  their  account,  500  bu.  Red  Wheat.     Pay  Freight 

on  same  in  cash,  50.00.     (<S.  B.  and  C.  B.,  and  check  the  entries.) 
Sell  Hoyt  &  Eaton,  on  «/c,  from  Hamlin's  Consignment,  600  bu.  W.  Oats,  @  47c.     {S.  B.) 
Close  Wm.  D.  Hamlin's  Consignment,  and  render  an  account  of  same.    Storage,  Ic.  per  bu.,  10.00; 

Commission,  2  ^  on  sales,  9.24.    Wm.  D.  Hamlin's  net  proceeds  to  his  credit,  377.76.     {R  B. 

See  form  of  Account  Sales,  j)age  80.) 

Note. — Rule  a  sheet  of  foolscap  paper,  and  write  up  the  form  of  this  Account  of  Sales.     See  illustration  on  page  2- 6*7 
an.     Rule  up  the  Consignments  in  the  Sales  Book  as  soon  as  they  are  closed. 

8.  Sell  for  cash,  50  bbls.  Apples,  @  2.25.     {C.  B.) 

Receive  from  Harding  &  Lee,  Salem,  to  sell  on  their  account,  400  bbls.  Flour.     (^S*.  B.) 

9.  Receive  cash  of  M.  B.  Steele,  on  oifc,  80.00.     (C.  B.) 

Sell  Geo.  Gould,  for  cash,  from  Foster  Bro's  Consignment,  200  bu.  R.  Wheat,  @  1.37i.     ('S'.  B. 
and  (J.  B.) 
10.    Pay  Welch  Bro's,  cash  on  afe,  200.00.     {C.  B.) 

Sell  M.  B.  Steele,  on  %  at  10  days,  from  Harding  &  Lee's  Consignment,  100  bbls.  Flour,  @  7.75. 
{S.  B.) 

You  may  now  balance  your  Cash  Book,  after  which  post  the  foregoing  entries.  Post  from  the 
Journal  as  heretofore.  "Post  from  the  Cash  Book  and  Sales  Book  as  instructed  for  the  Cash  Method; 
that  is,  all  items  on  the  left  side  are  to  be  credited,  and  all  on  the  right  side  debited.  You  need  not  in 
this  set,  however,  open  in  the  Ledger  a  Cash  account  nor  accounts  with  Consignments.  '  When 
taking  a  Trial  Balance,  carry  to  it  the  balance  of  cash  on  hand,  as  shown  by  the  Cash  Book,  and  the 
balances  of  all  unclosed  Consignments,  as  shown  by  the  Sales  Book.  All  items  tliat  are  checked  are 
not  to  be  posted.  In  posting  the  items  not  checked,  use  the  Ledger  folio  as  a  check  mark.  Give  each 
account  one-fourth  of  a  page  space. 

Commence  with  the  Cash  Book,  and  complete  the  posting  from  that  book;  then  follow  with  the 
Sales  Bogk  in  same  manner,  and  then  with  the  Journal.  The  dates  will  not  come  in  regular  order  in 
the  Ledger  by  this  method  of  posting,  but  this  is  not  material.  After  you  have  finished  posting  from 
all  of  the  books,  your  Ledger  accounts  should  agree  with  those  given  on  pages  120-121. 

Take  a  Trial  Balance,  and  it  should  agree  with  the  one  given  on  next  page.  The  debits  and 
credits  in  Foster  Bro's  Consignment  and  Harding  &  Lee's  Consignment  being  une([ual,  as  shown  by 
your. Sales  Book,  it  becomes  necessary  to  enter  them  in  the  Trial  Balance;  also  enter  in  the  Trial 
Balance  the  balance  of  cash  on  hand,  as  shown  by  the  Cash  Book. 


tllEORETiCAL    AND    PRACTICAL    BOOK-KEEPING. 


123 


TRIAL  BALANCE,  SEPTEMBER  10,  188- 


Student, 

Mdse. 

M.  B.  Steele,      -        -        -        - 
Expense,         .        .        -        - 
Welch  Bro's,       -        .        -        - 
Storage,  .        -        .        - 

Commission,        .        -        .        - 
Wm.  D.  Hamlin,    -        -        - 
Hoyt  &  Eaton,    -        -        -        - 
Bills  Payable,  .        .        - 

Sliip't  to  L.  Coleman,  Bay  View, 
Foster  Bro's  Con.    -        -        - 
Harding  &  Lee's  Con. 
Cash,       ----- 


3500 

1000 

Gt2 

50 

955 

80 

18 

75 

300 

400 
10 

9 

24 

377 

76 

282 

GOO 

505 

j 

224 

50 

775 

3G28 

25 

6589 

00 

6589 

00 

After  completing  the  Trial  Balance,  continue  the  business,  making  the  entries  for  the  following 
transactions  in  the  various  books  as  heretofore  instructed. 


SEPTEMBER,    188-. 

11.  Receive  cash  of  Hoyt  &  Eaton,  on  "{c,  182.00. 

Buy  of  Jas.  P.  King,  on  "jc,  300  bu.  Potatoes,  @  65c.     (/.) 

Pay  cash  for  Cooperage  on  Flour  belonging  to  Harding  &  Lee's  Consignment,  3.75.     {S.  B.  and 
C.  B.,  and  check  the  entries.) 

12.  Sell  P.  J.  Gibson,  for  cash,  from  Foster  Bro's  Consignment,  300  bu.  R.  AVheat,  @  1.37i.     {S.  B. 

and  C.  B.,  and  check.) 
Close  Foster  Bro's  Consignment,  and  render  an  account  of  same.     Storage,  2^c.  per  bu.,  12.50; 
Commission,  2^  on  sales,  13.73.     Net  proceeds  lemitted  in  cash,  610.02.     (S.  B.  and  C.  B.; 
check  610.02.) 

13.  Receive  from  L.  Coleman  an  account  of  the  shipment  made  him  5th  inst.,  with  cash  for  your  net 

proceeds,  634.50.     (C.  B.) 
Student  draws  cash  for  private  use,  50.00. 
Sell  J  no.  Howe,  from  Harding  &  Lee's  Consignment,  100  bbls.  Flour,  @  8.00.     Receive  cash, 

300.00.     Balance  on  ajc  at  15  days.     {S.  B.  and  0.  B.;  check  300.00.) 

15.  Ship  A.  G.  Niles,  Evansville,  to  be  sold  on  your  account,  200  bu.  Potatoes,  @  65c.     Pay  Cartage 

in  cash,  3.25.     (/.  and  V.  B.j  check  3.25.) 
Note. — Write  up  on  foolscap  paper  the  form  for  this  Invoice  of  Shipment.     See  Business  Forms,  on  last  pages  of 
the  text  book,  for  illusliation. 

Pay  Book-keeper  cash,  to  apply  on  Salary,  25.00. 

Remit  Harding  &  Lee,  for  cash  sale  made  from  their  Con.  13  inst.,  300.00.    {S.  B.,  0.  B.  and  check.) 

16.  Pay  your  note  due  to-day  in  cash,  600.00. 

18.  Receive  from  Henry  Benson,  Seneca,  to  sell  on  his  account,  500  doz.  Eggs.     Pay  Express  charges 

in  cash,  6.25. 

Note. — The  letters  indicating  the  books  will  hereafter  be  omitted.  Remember  to  check  Cash  whenever  it  is  debited 
or  credited  elsewhere  than  in  the  Cash  Book,  and  to  check  Consignments  if  debited  or  credited  elsewhere  than 
in  the  Sales  Book. 

19.  Remit  Wm.  D.  Hamlin  cash  in  full  for  his  net  proceeds,  as  per  Account  Sales  6tli  inst.,  377.76. 
Sell  for  cash,  50  bu.  Potatoes,  @  75c. 

Pay  J.  P.  King  cash  on  «/«,  50.00. 

Sell  to  Geo.  Lacy,  tor  cash,  from  Benson's  Consignment,  200  doz.  Eggs,  @  18c. 

20.  Sell  W.  D.  Vance,  on  his  note  at  30  days,  from  Harding  &  Leo's  Consignment,  200  bbls.  Flour, 

@  8.00. 
Close  Harding  &  Lee's  Consignment,  and  render  an  account  of  same.     Storage,  8c.  j)er  bbl. ; 

Commission,  2  ^  of  sales.     Balance  to  Harding  &  Lee's  credit  due  by  equation  Oct.  10th. 
Note. — You  are  required  to  work  this  equation  to  verify  the  result  as  given  above.     See  your  Arithmetic  for 
instruction  m  Equation  of  Accounts. 

Receive  cash  of  M.  B.  Steele,  in  full  of  %  875.00. 


124 


THEORETICAL   AND    PRACTICAL   BOOK-KEKPING. 


You  may  now  balance  your  Cash  Book.  Cash  on  hand,  4078.97.  Next  post  the  foregoing  entries 
from  the  various  books,  as  instructed  on  page  123,  after  which  take  a  Trial  Balance.  Eemember  that 
Cash  and  all  unclosed  Consignments  must  be  entered  in  the  Trial  Balance  before  it  will  prove. 

Iir  the  Trial  Balance  given  below,  a  portion  only  of  the  amounts  are  extended,  the  student  being 
required  to  complete  the  extensions,  as  well  as  to  verify  those  which  are  given,  from  his  own  books. 
After  completing  the  Trial  Balance,  continue  the  business  to  the  end  of  September,  when  you  will 
make  out  a  Balance  Sheet  and  close  the  Ledger. 


TRIAL  BALANCE,  SEPTEMBER  20,  188-. 


Student,  -        -        -        - 

Mdse. 

Expense,         -        .        .        .        . 

Welch  Bro's,        -         .        .        . 
Storage,  ------ 

Commission,        -        -        -        . 
Hoyt  &  Eaton,         -        -        .        . 
Ship't  to  L:  Coleman,  Bay  View, 
J.  P.  King,     -        -        -        -        - 

Harding  &  Lee,  -         -        -        - 

J.  Howe,         -        -        -        .        - 
Bills  Keceivable,          -        -        - 
Ship't  to  A.  G.  Niles,  Evansville,    - 
Henry  Benson's  Con.  -        -        - 
Cash, 


50 
1195 


505 


133 


35 


4078    97 


8637 


97 


3500 

780 


54 

80 

634 


8637 


50 

47 

50 


97 


3L 
33. 

33. 


24. 


25. 


36. 


37. 


28. 


SEPTEMBER,  188-. 
Ship  Wells  &  Co.,  Argyle,  to  be  sold  on  your  account,  100  bbls.  Apples,  @  2.00. 
Receive  from  Lester,  Hall  &  Co.,  Brantford,  to  sell  on  their  account,  300  bu.  Clover  Seed.     Pay 

Freight  in  cash,  15.00. 
Receive  from  A.  G.  Niles  an  account  of  the  shipment  made  him  15th  inst.     Net  proceeds  placed 

to  your  credit,  131.75. 
Receive  cash  of  Jno.  Howe,  on  '^c,  300.00. 
Remit  Harding  &  Lee  cash,  for  balance  due  them  on  their  Consignment,  2775.75,  less  discount  to 

equated  time  of  payment,  Oct.  10. 
Receive  from  Wm.  D.  Hamlin,  to  sell  on  his  account  (3d  Consignment),  3000  bu.  White  Wheat. 

Pay  Freight  in  cash,  330.00. 
Buy  of  Thos.  C.  Jennings,  on  your  note  at  60  days,  800  bu.  Corn,  @  70c. 
Pay  Welch  Bro's  cash,  in  full  of  %  300.00. 
Sell  French  &  Sweet,  for  casli,  from  Lester,  Hall  &  Co.'s  Consignment,  100  bu.  Clover  Seed, 

@  5.00. 
Close  Lester,  Hall  &  Co.'s  Consignment  (100  bu.  Clover  Seed  remaining  unsold),  and  render  an 

account  of  same.      Storage,  2^0.  per  bu.,  5.00;   Commission,  3  j^  of  sales.      Net  proceeds 

remitted  in  cash,  470.00. 

Note. — Make  a  memorandum  simply,  on  the  credit  side  of  the  Consignment,  of  the  100  bu.  unsold.  Next  close 
and  rule  up  the  Consignment,  and  then  enter,  below  the  ruling  on  the  debit  side,  the  memorandum  of  the  100 
bu.  unsold. 

Sell  for  cash,  50  bu.  Potatoes,  @  78c. 

Ship  0.  W.  Sears,  Branchport,  to  be  sold  on  your  account,  800  bu.  Corn,  @  70c.     Pay  Insurance 

5.00,  and  Labor  on  same,  3.10  in  cash. 
A.  G.  Niles  remits  you  cash,  to  balance  his  ^,  121.75. 

Pay  cash  for  re-packing  300  doz.  Eggs  belonging  to  Benson's  Consignment,  1.35. 
Pay  J.  P.  King  cash  on  cfc,  45.00. 

Sell  Jas.  Barger,  for  cash,  385  doz.  Eggs,  from  Benson's  Consignment,  @  17c. 
15  doz.  Eggs  belonging  to  Benson's  Consignment  were  broken. 
Close  Benson's  Consignment,  and  render  an  account  of  same.     Commission,  2^  ot  sales.     Net 

proceeds  remitted  in  cash. 


THEORETICAL    AND    PRACTICAL    BOOK-KEEPING.  125 

28.    Sell  M.  B.  Steele,  on  "jc,  100  bbls.  Apples,  @  2.40. 

Prepay  your  note  of  26th  inst.,  favor  of  Thos.  C.  Jenniijgs,  in  cash,  less  discount. 
39.    Sell  Scott  &  Trevor,  on  their  note  at  15  days,  from  Hamlin's  Con.  No.  2,  250  bu.  W.  Wheat, 

@  1.25. 
30.    Eeceive  from  Wells  &  Co.  an  account  of  the  shipment  made  them  21st  inst.      Net  proceeds 
remitted  in  cash,  224.50. 
AV.  D.  Vance  prepays  his  note  of  20th  inst.  in  cash,  less  discount. 
Sell  Chas.  G.  Nixon,  from  Lester,  Hall  &  Co.'s  Consignment,  100  bu.  Clover  Seed,  @  5.00.    Receive 

his  check  on  Bank  of  Republic,  300.00.     Balance  on  "fc. 
Close  Lester,  Hall  &  Co.'s  Consignment,  and  render  an  account  of  same.     Storage,  2Jc.  per  bu., 
2.50;  Commission,  2^  of  sales.     Remit  cash  to  Lester,   Hall  &  Co.  200.00,  and  place  the 
balance  of  the  net  proceeds  to  their  credit. 
Pay  Book-keeper  balance  due  on  month's  salary,  25.00,  and  Warehouse  Rent,  50.00,  in  cash. 
Receive  cash  of  Hoyt  &  Eaton,  to  balance  "jc,  100.00. 

INVENTORY,  SEPTEMBER  30,  188-. 
Shipment  to  0.  W.  S.,  Branchport, 568  10 

You  may  now  balance  your  Cash  Book.     Cash  on  hand,  2464.18.     Post  and  make  out  a  Balance 
Sheet  and  close  the  Ledger.     Your  Summary  should  exhibit  as  follows: 

SUMMARY,   SEPTEMBER   30,   188-. 


Total  Resources, 4102  28 

"     Liabilities, 387  50 


Present  Woi-th, ___ 3714  78 


Total  Gains, 395  03 

"     Losses,  - .  _ 130  25 


NetGain, 264  78 


After  closing  the  Ledger  and  proving  your  balances,  present  your  books,  witli  a  proof  of  the  Ledger 
balances,  to  the  teacher  for  inspection. 

QUESTIONS   FOR   REVIEW. 

Page  117.— 'What  does  this  set  illustrate?  'What  books  are  employed?  'Are  they  us^d  as 
principal  or  auxiliary  books?    *  What  entries  are  made  in  the  Sales  Book?    '  In  the  Cash  Book?    « In 

the  Journal? 

Page  123.—'  Why  are  Cash  and  Consignments  checked  and  omitted  in  posting  when  they  appear 
in  any  other  books  than  the  Cash  Book  and  Sales  Book?  « In  posting  from  the  Ca.sh  Book  and  Sales 
Book,  how  is  the  work  to  be  performed?  »  Why  must  unclosed  Consignments  and  the  balance  of  cash 
on  hand  be  entered  in  the  Trial  Balance? 

NoTB. — Review  also  the  questions  given  on  page  63. 


WHOLESALE. 


'  This  set  is  designed  to  illustrate,  in  a  general  way,  a  method  for  keeping  the  books  of  a  Wholesale 
or  Jobbing  Business,  '•'by  combining  and  extending  the  short  methods  of  book-keeping  explained  and 
illustrated  in  previous  sets,  so  that  much  time  and  labor  may  be  saved  in  performing  the  work. 

Since  in  almost  every  business  of  any  magnitude  there  will  be  features  peculiar  to  that  particular 
business,  there  must  of  necessity  be  required  other  forms  and  books  than  those  here  given,  and  which 
it  would  be  quite  impossible  to  illustrate  within  the  scope  of  an  ordinary  text  book. 

'  The  principal  books  and  forms,  however,  together  with  their  uses  and  advantages,  are  so  fully 
illustrated  and  explained,  that  any  modifications  of  or  additions  to  them,  necessary  to  meet  the  require- 
ments of  any  particular  business,  may  readily  be  devised  and  employed. 

The  books  to  be  used  are  the  Journal,  Sales  Book,  Check  Book,  Cash  Book,  Bill  Book  and  Ledger. 

136 


THEORETICAL    AND    PRACTICAL    BOOK-ia':EPING.  127 

EXPLANATIONS  OF   BOOKS   USED. 

JOURNAL. 
*  The  Journal,  as  used  in  this  set  (see  form  on  page  138),  combines  with  it  the  Invoice  Book, 
sometimes  kept  as  a  separate  book,  "by  the  addition  of  an  extra  column  (headed  "Mdse.  Dr."  in  the 
form),  in  which  the  purchases  of  Mdse.  only  are  to  be  entered.  'This  column  is  to  be  added  and  the 
footmg  carried  forward  from  page  to  page  until  the  end  of  the  day  or  week  or  month,  as  desired, '  at  which 
time  the  total  footing  is  to  be  posted  to  the  debit  of  Mdse.  account.  '  The  items  in  the  columns 
headed  "Sunds.  Dr."  and  '■  Suuds.  Cr."  are  to  be  posted  separately,  as  in  the  ordinary  Journal. 
These  columns  may  be  footed,  so  as  to  prove  with  the  Check  Sheets  explained  on  page  134. 
•The  Invoices  themselves  may  either  be  filed  away  in  packages,  or  pasted  in  a  large  book  made 
especially  for  that  purpose.  '"  This  may  be  used  as  a  principal  book  if  desired,  by  "  posting  from  it 
directly  to  the  Ledger,  without  making  the  entries  in  the  Journal. 

SALES  BOOK. 
"  The  Sales  Book  (see  form  on  page  129)  is  designed  to  contain  sales  of  Mdse.  only.  "  The  net 
amount  of  each  bill  is  to  be  extended  to  tlie  last  column,  and  debited  to  the  person  wlio  purchased  it. 
"  The  last  column  is  to  be  added  and  the  footing  carried  forward  from  page  to  page  until  the  end  of  the 
day,  week  or  month,  as  desired,  "  the  total  being  then  posted  to  the  credit  of  Mdse.  account.  "  An 
additional  advantage  may  be  secured  by  using  for  a  Sales  Book  a  large  Copying  Book,  in.  which 
impressions  of  all  of  the  bills  may  be  made  and  posted  directly  to  the  Ledger. 

CHECK  BOOK. 
"  In  the  Check  Book  (the  form  given  on  page  130  shows  the  stub  only)  is  to  be  kept  a  record  of  all 
transactions  with  the  bank,  ''and  a  Bank  account  is  not  to  be  opened  in  the  Ledger.  "  When  a  deposit 
is  made,  the  Bank  is  debited  for  the  amount  of  the  deposit  by  entering  it  in  tlie  Check  Book,  with  the 
proper  explanation,  and  "  adding  the  amount  to  the  previous  balance.  "  When  a  cheek  is  drawn,  the 
bank  is  credited,  by  "  deducting  the  amount  of  the  check  from  the  previous  balance.  '"  No  entry  is  to 
be  made  in  the  Cash  Book  when  cash  is  deposited,  "the  balance  in  bank  being  treated  as  cash  on 
hand.  ''When  a  payment  is  made  by  check,  therefore,  the  amount  must  be  entered  to  the  credit  of 
cash  in  the  Cash  Book,  in  addition  to  crediting  the  bank  in  the  Check  Book,  because  reducing  the 
bank  balance  reduces  the  cash  balance  at  the  same  time. 

CASH   BOOK. 

"  The  Cash  Book  (see  form  on  pages  130-131)  is  designed  to  contain  cash  entries  only.  "  It  is 
arranged  with  special  columns,  **  in  order  to  classify  to  some  extent  the  receipts  and  payments  of  cash, 
and  to  facilitate  the  work  of  posting.  "  The  footings  only  of  the  special  columns  are  to  be  posted 
daily,  weekly  or  monthly,  as  desired,  those  on  the  left  side  being  credited,  and  those  on  the 
right  debited.  '"The.  items  in  the  Sundries  columns  are  to  be  posted  separately,  those  on  the 
left  side  credited,  and  those  on  the  right  debited.  "  In  posting  to  the  Cash  account  in  the 
Ledger,  the  diSerence  in  the  cash  balances  only  is  to  be  posted.  "  If  the  balance  of  cash  on  hand 
is  less  than  at  the  last  posting,  Cash  account  is  to  be  credited  with  the  difference;  "if  more, 
IS  to  be  debited.  To  prove  the  cash,  "add  together  the  footings  of  all  of  the  columns  on  the  left  side 
of  the  Cash  Book,  and  the  amount  will  be  the  total  debit  of  Cash;  ""then  add  together  the  footings  of 
all  of  the  columns  on  the  right  side,  and  and  the  amount  will  be  the  total  credit  of  Cash.  **  The 
difference  between  these  two  amounts  will  lie  tho  balance  of  cash  on  hand,  "  which  is  found  by  adding 
the  cash  in  safe  and  the  balance  in  bank  together. 

BILL   BOOK. 

"  The  Bill  Book  is  to  be  kept  as  an  auxiliary  book,  the  same  as  heretofore.  "  It  may  ]>e  kejjt  as  a 
principal  book;  but  as  a  rule  the  entries  in  it  are  so  few,  comparatively,  that  most  book-keepers- 
prefer  to  journalize  such  entries. 

TRIAL  BALANCE. 

"  The  form  of  Trial  Balance  shown  on  page  134  is  called  a  Continued  Trial  Balance,  and  "  is 
designed  to  save  the  time  and  labor  consumed  in  re-copying  the  titles  of  the  various  accounts  whenever 
a  Trial  Balance  is  to  be  taken. 

LEDGER   INDEX. 

A  common  form  of  Ledger  Index  is  illustrated  on  page  131.  "  A  convenient  plan  for  such  an 
Index,  if  the  number  of  accounts  is  not  too  great,  is  to  arrange  the  names  alphabetically,  as  shown  in 
the  form  on  page  131,  written  upon  a  stiff  card  of  suitable  size,  which  can  stand  in  front  of  the  person 
who  is  posting,  making  it  much  easier  to  be  referred  to  than  the  ordinary  form  of  Index.  "  When  the 
number  of  accounts  is  very  large,  a  Vowel  Index  is  generally  employed. 


128 


THEORETICAL    AND    PRACTICAL    BOOK  KEEPING. 
JOURNAL. 

OCTOBER,   188-. 


DATE. 

FoUo. 

MDSE.  DR. 

8DNDS.  DR. 

BUNDS.  CR. 

Oct. 

1 

H.  G.  Fuller  and  Student  form  a  co-partnersliip 

this  day,  under  the  firm  name  of  Fuller  &  Stu- 

dent, to  engage  in  the  Wholesale  Business  of 

Wooden  Ware  and  Grocers'  Sundries. 

The   partners   are   to    invest    equally,  and    share 

equally  in   gains  and   losses.     An   interest  ac- 

count is  to  be  kept  between  the  partners. 

J? 

61 

61 
61 
61 
62 

Sundries,                     To  H.  G.  Fuller, 

Invested  as  follows : 
Bills  Receivable,          Carter's  note,  per  B.  B. 

Hawley  &  Co. 's  note,  per  B.  B. 
Interest,                        On  above  to  date, 
Cowles  &  Hutchings,  On  account, 
Olean. 

300 

500 

7 

3556 

33 

14 

3363 

47 

?s 

61 
61 
63 
63 

61 
62 
63 

63 

61 

Sundries,                      To  Sundries, 

Student  invested  as  follows: 
Bills  Receivable,          Leighton's  note,  per  B.  B. 
Interest,                        On  above  to  date, 
W.&  E.Morgan, City,  On  account, 
To  Bills  Payable,         Note  to  Fulton,  per  B.  B., 
assumed  by  the  firm. 
Interest,                    On  above  to  date, 
S.W.Siddons,City,  On  account, 
Lorrain  Mfg.  Co.,     " 

New  York, 
Brown  Bro's  &  Sea-^ 

ver,  Eastport,       *"          " 
Student,                   Net  Investment, 

3000 

30 

2014 

66 

600 

8 
307 
490 

275 
3363 

50 
44 
35 

47 

2 

63 

To  Byron  Vaile,           Inv.  Oct.  1,  60  days, 
Toronto. 

612 

25 

613 

25 

3 

61 
62 

Bills  Receivable,          Rec'd  note  to  apply  on  "/c. 
To  W.  &  E.  Morgan,       per  B.  B. 

500 

500 

4 

63 

To  Scovell,  Hodges  & 

Co.,  New  York,       Inv.  Oct.  2,  15  days. 

812 

34 

813 

34 

» 

63 
62 

Brown  Bro's  &  Seaver,  Gave  them  note  per  B.  B.  on 
To  Bills  Payable,             account. 

100 

100 

5 

64 

To  F.M.  Reed,  Boston,  Inv.  Oct.  3,  90  days. 

1540 

71 

1540 

71 

?) 

61 
65 

Bills  Receivable,  "       Rec'd  note  per  B.   B.,  for 
To  B.  N.  Achard,           Mdse.  as  per  S.  B. 

81 

75 

81 

75 

7 

64 

To  Hopkins  &  Weeks,  Inv.  Oct.  4,  60  days, 
Baltimore. 

1316 

70 

1316 

70 

8 

63 
62 

Scovell,Hodges&  Co.  Gave  them  note  in  full  for 
To  Bills  Payable,             Inv.  Oct.  2, 

812 

34 

812 

34 

9 

64 

To  Geo.  P.  Osgood,    Inv.  Oct.  7,  30  days, 

Chicago. 
Brown  Bro's  &  Seaver,  Remitted  them,  on  "/c,  draft 

216 

50 

216 

50 

)? 

63 

100 

62 

To  Cowles  &  Hutch-     at  30  days  on  C.  &  H. 

100 

10 

63 

ings. 
To  Byron  Vaile,          Inv.  Oct  7,  60  days, 

376 

88 

376 

88 

;? 

61 
62 

64 

Bills  Receivable,          Rec'd  note  to  apply  on  "/c, 
To  W.  &  E.  Morgan,      per  B.  B. 

300 

300 

4875 

38 

10303 

23 

15177 

60 

THBOKETIOAL    AND    PRACTICAL    BOOK-KEEPING. 

SALES   BOOK. 

OCTOBER.    188-. 


129 


Oct. 


65 


G5 


65 


65 


65 


66 


65 


66 


64 


Frank  Goodspeed,  Waverly. 

1  doz.  No.  1  0.  Chop.  Trays, 

5. 

5 

2  Glass  Cheese  Safes, 

4.50 

9 

10  Nests  P.  Pails, 

1.25 

13 

-50. 

26 

5( 

F.  E.  Warren,  New  Kochelle. 

3  doz.  N.  D.  Z.  Wash  Boards, 

3.50 

7 

50 

j 

5    "    E.  S.  Z. 

1.75 

8 

75 

5  M  No.  4  Paper  Bags, 

1.75 

8 

75 

10^ 

88 

7 

87 

3  doz.  12-in.  B.  Bowls, 

1.75 

5 

25 

4    "     Cov.  W.  D.  Baskets, 

2.50 

10 

2    "    0.  C.  Trays,  No.  2, 

5. 

10 

1*  "     No.  10  Feather  Dusters, 

20. 

30 

1    "    No.  12 

26.50 

26 

50 

56 

50 

25  and  10  i 

18 

36 

38 

27 

14 

10  gro.  Gates'  Matches, 

2.70 

6  Broom  Racks, 

2.50 

_  15 



129 

5] 

Larkin  &  Sprong,  Groveland. 

30  days. 

2  doz.  Wood  Shovels, 

7.50 

15 

25  lbs.  Cotton  Twine, 

.24 

6 

2  doz.  No.  3  Wood  Scoops,  ■ 

4.50 

9 

30 

B.  N.  Achard,  Scipio.                        Note 

per  B.  B. 

10  doz.  2-hoop  Pails, 

2. 

30 

3    "     H.  H.  Tubs, 

8.75 

26 

35 

2    "     Com.  H.  Tubs, 

8.50 

17 

3    "     Clothes  Pounders, 

3. 

6 

10    "     Rolling  Pins, 

1.25 

12 

50 

81 

75 

Larkin  &  Sprong, 

30  days. 

13  doz.  Royal  S.  Dressing, 

1. 

13 

4  gro.  Dixon  S.  Polish, 

6.00 

24 

3  doz.  qts.  University  Ink, 

6.00 

18 

10^ 

1 

80 

16 

20 

52 

20 

Welch  &  Dow,  Fairport. 

Cash. 

6  gro.  W.  Crystal, 

2.75 

16 

50 

50  boxes  Crayon, 
25  gro.  K.  Wicks, 

.07 

3 

50 

.40 

10 

30 

Frank  Goodsjjeed. 

45  days. 

2  doz.  N.  C.  Wringers, 

45. 

. 

90 

3    "     W.  Shovels, 

7.50 

23 

50 

5    "     H.  H.  Tubs, 

8.75 

43 

75 

2  Oil  Tanks, 

16. 

25^ 

33 

8 

24 

4  doz.  B.  Baskets, 

7.50 

30 

3    "     11.  Brushes, 

6. 

18 

5  gro.  Kinning's  Bluing, 

8. 

40 

268 

25 

Welch  &  Dow. 

4  doz.  U.  Ink, 

6. 

24 

-10^ 

2 

40 

21 

60 

4    "     H.  H.  Tubs, 

8.75 

35 

1 

5    "     W. 'Shovels, 

7.50 

37 

50 

94 

IC 

712 

31 

130 


THEORETICAL    AND    PRACTICAL    BOOK  KEEPING. 

■   CASH  BOOK. 

OCTOBER,   188-. 


DATS. 

Folio. 
61 

CASH 

TO                         SUNDRIES. 

SUNDRIES. 

HDSE. 

BILLS  RKC. 

DISCOUNT. 

0.!t. 

1 

H.  G.  Fuller, 

Cash  paid  in. 

2636 

53 

61 

Student, 

On  deposit  in  C.  Bank, 

2636 

53 

2 

Mdse. 

Drawer  sales, 

95 

48 

3 

Discount, 

B.  Vaile, 

30 

61 

4 

Bills  Eeceivable, 

Leigh  ton's  note  paid. 

3000 

?? 

61 

Interest, 

On  above  note. 

31 

50 

J? 

Mdse. 

Drawer  sales, 

21 

19 

5 

<( 

a              it 

62 

10 

jy 

66 

Welch  &  Dow, 

Cash  sale  per  S.  B. 

30 

6 

* 

Bills  Eeceivable, 

Hawlev  &  Co.  's  note  paid. 

500 

?J 

61 

Interest, 

On  above  note. 

7 

75 

8 

65 

Frank  Goodspeed, 

Inv.  3d  inst. 

26 

50 

>f 

Mdse. 

Drawer  sales. 

52 

12 

JJ 

Bills  Receivable, 

Carter's  note  paid. 

300 

10 

65 

Larkin  &  Sprong, 

Inv.  Oct.  3, 

30 

J> 

Discount, 

F.  M.  Eeed, 

38 

52 

939  S 

8  1 

2  3  0 

8  » 

3  8  0  0 

6» 

1  3 

64 

Mdse. 

230 

89 

61 

Bills  Receivable, 

3800 

66 

Balance, 

Discount. 

• 

69 

13 



9408 

83 
05 

Oct. 

11 

6149 

FIRST  PAGE. 


Oct.  1.    Balance, 
"    2.    Deposited, 

No.....}-. 

Date Oct.3,  188-. 

2^0     \Vm.  Strong. 


for     Rent  for  October. 
Amount 


No .?•....... 

Date..^^^-  3; 


fo     College  Bank. 


fof^     Draft  remitted  to  Vaile. 
Amount 


CHECK  BOOK  STUB. 


2636 

2000 

4  «3« 


125 

4911 


583 

3>38 


53 


09 

4  4 


SECOND   PAGE, 


Oct.  4.    Deposited, 
"     9.    Note  favor  of  Fulton  paid, 
"  10.    Deposited, 

No. 3: 

Date Oct:..lOA 

fo    F.  M.  Reed. 


Por     ^n  account. 


A  mount... 


3  928 

4  4 

2500 

e4a8 

4  4 

609 

30 

58  19 

1  4 

500 

1502 

4  8  16 


19 

9S 


THKORETICAL    AND    PRACTICAL    BOOK-KEEPING. 

CASH   BOOK. 

OCTOBER,   188-. 


131 


DATB. 

Folio. 

03 
63 

62 

62 
61 

64 

66 

66  I 

66 

SUNDRIKS                        TO                               CASH. 

SUNDRIES. 

EXPENSE. 

DISCOUNT. 

Oct. 

2 
3 

» 

4 
8 
9 

10 

Expense,                   Office  Safe,  200;  Books,  37.50 

Lorrain  Mfg.  Co.     On  account, 

Ex5)ense,                   Rent  for  October, 

Byron  Vaile,             Inv.  Oct.  1, 

Expense,                   Exch.  on  draft, 

S.  W.  Siddons,          On  account. 

Discount,                  F.  Goodspeed, 

Bills  Payable,           Note  favor  Fulton, 

Interest,                    On  above  note. 

Discount,                   Larkin  &  Sprong, 

F.  M.  Reed,              Inv.  Oct.  3, 

Expense,                     Coal  for  office. 

Expense, 
Discount, 

Balance,                     In  Bank,                       4816.05 
'••  Sale,                         1332.10 

100 

612 

107 

600 

9 

1540 

aggg 
379 

25 
44 

30 

71 

70 

25 

83 

237 

125 
1 

15 

370 

50 

45 

30 
as 

53 

30 

8  3 

3349 

6149 

78 
05 

9498 

83 

LEDGER   INDEX. 


Achard,  B.  N.,  65. 


B 

Bills  Receivable,  61. 
Bills  Payable,  62. 
Brown  Bro's  &  S.,  63. 


Cowles  &  Hutchings,  62. 
Cash,  66. 


Discount,  66. 


Expense,  66. 
Eaton,  M.  M.,  67. 


Fuller,  H.  G.,  61. 


Goodspeed,  Frank,  65. 
Gardner,  Wm.,  67. 


Hopkins  &  Weeks,  64. 
Hackett  &  Brisbain,  66. 


I,  J 

Interest,  61. 


Lorrain  Mfg.  Co.,  63. 
Larkin  &  Sprong,  65. 


LEDGER   INDEX. 


M 

S 

Morgan,  W.  &  E. 
Merchandise,  04. 

,  62. 

Student,  61. 
Siddons,  S.  W.,  62. 
Scovell,  H.  &  Co.,  63. 

N 

T 
Tildeu  &  Breme,  67. 

0 

U 

Osgood,  Geo.  P., 

64. 

V 

P 

Vaile,  Byron,  63. 

W 

Q 

Warren,  F.  E.,  65. 
Welch  &  Dow,  66. 

R 

Reed,  F.  M.,  64. 
Richardson,  R.,  67. 

X,  Y,  Z 

132 


THEORETICAL    AND    PRACTICAL    BOOK-KEEPING. 

LEDGER. 

H.  G.  FULLER. 


188- 

Oct. 

1 

J. 
C.  B. 

50 
30 

3363 

2636 

6  0  0  0 

47 
53 

0  0 

STUDENT. 


188- 

Oct. 

1 

J. 
C.  B. 

50 
30 

3363 

2636 

6  0  0  0 

47 
53 

0  0 

BILLS 

RECEIVABLE 

188- 

188- 

Oct. 

1 

?? 

3 
5 

10 

J. 
« 

50 

a 
it 

51 

£( 
{t 

300 
500 
3000 
500 
81 
300 

4«81 

75 

7S 

Oct. 

10 

C.  B. 

30 

3800 

INTEREST. 


188- 

188- 

Oct. 

1 

J. 

50 

7 

33 

Oct. 

1 

J. 

50 

8 

50 

99 

<i 

ii 

30 

4 

C.  B. 

30 

81 

50 

9 

C.  B. 

30 

9 

40 

30 

13 

0 

(( 

it 

7 

*  7 

75 

,5 

COWLES  &  HUTCHINGS,  Olean. 


188- 
Oct. 


J. 


50 

_  2556 

14 

188- 
Oct. 

i 

9 

51 


100 


W.  &  E, 

MORGAN 

,  c 

ty- 

188- 
Oct. 

1 

J. 

50 

2014 

66 

188- 
Oct. 

3 

10 

J. 

51 

500 

300 

8  0  0 

BILLS  PAYABLE. 


188- 

188- 

Oct. 

9 

C.  B. 

30 

000 

Oct. 

1 
4 

8 

J. 

(( 
6( 

50 
51 

600 
100 
812 

1513 

34 

34 

S.  W,  SID  DONS,  City. 


188- 
Oct. 


C.  B. 


30 

107 

44 

188- 
Oct. 

1 

50 


307 


44 


LORRAIN    MFG.  CO.,  NewYoik. 


188- 
Oct. 


0.  B. 


30 

100 

188- 
Oct. 

1 

J. 


50 


490 


25 


THEOKETIOAL   ANB   PEACTICAL   BOOK-KEEPING. 

BROWN   BRO'S  &  SEAVER,   Eastport. 


133 


188- 
Oct. 


188- 

J. 

51 

100 

Oct. 

1 

a 

ii 

100 

300 

50 


275 


BYRON  VAILE,  Toromo. 


188- 

188- 

Oct. 

3 

0.  B. 

30 

G12 

25 

Oct. 

2 
10 

Inv.  Oct.  1,  60  ds. 

'••   "  7,  " 

J. 

ii 

51 

ii 

612 
376 
»»» 

25 

88 

13 

SCOVELL,   HODGES  &  CO.,   New  York. 


188- 
Oct. 


J. 


51 

812 

34 

188- 
Oct. 

4 

Iiiv.  Oct.  2,  15  ds.       J. 


51 


812 


34 


F.   M.   REED,    Boston. 


188- 
Oct. 


10 


C.  B. 


30 

1540 

71 

188- 
Oct. 

5 

Inv.  Oct.  3,  90  ds.       J. 


51 


1540 


71 


B.  N.  ACHARD,  Scipio. 


188- 
Oct. 


S.  B.    21 


81 


75 


188- 
Oct. 


J. 


51 


81 


75 


HOPKINS  &  WEEKS,   Baltimore. 


188- 
Oct. 

i 

luv.  Oct.  4,  60  ds.       J. 


51 


1316 


70 


GEO.   P.  OSGOOD,  Chicago. 


188- 
Oct. 

9 

Inv.  Oct.  7,  30  ds.       J. 


51 


216    50 


MERCHANDISE. 


188- 

188- 

Oct. 

10 

J. 

51 

4875 

38 

Oct. 

10 

S.  B. 

22 

712 

31 

C.  B. 

30 

230 

89 

g  4  3 

30 

FRANK   GOODSPEED.  Waverly. 


188- 
Oct. 


45  ds. 


1 

188- 

S.  B. 

20 

26 

50 

Oct. 

8 

ii 

21 

268 

30  4 

25 

7  5 

C.  B. 


30 


26 


50 


F.   E.  WARREN,   New  Rochelle. 


188- 
Oct. 


S.  B. 


20 

129 

51 

LARKIN  &.  SPRONG,  Groveland. 


188- 
Oct. 


30  ds. 


188- 

S.  B. 

20 

30 

Oct. 

10 

ii 

21 

52 

83 

20 

3  0 

C.  B. 


30 


30 


134 


THEORETICAL    AND    PRACTICAL    BOOK-KEEPING. 
WELCH  &  DOW,   Fairport. 


188- 
Oct. 


188- 

S.  B. 

22 

30 

Oct. 

5 

a 

ii 

94 

124 

10 
1  0 

C.  B. 


30 


30 


DISCOUNT. 


188- 
Oct. 


10 


C.  B. 


30 


188- 
83  II  Oct. 

EXPENSE. 


10 


C.  B. 


30 


69 


13 


188- 
Oct. 


10 


C.  B. 


30 


379 


25 
CASH. 


188- 
Oct. 


10 


C.  B. 


30 


6149 


05 


It  is  customary  in  business  to  post  the  items  from  the  various  books  every  day,  and  after  posting 
to  review  the  work,  re-examining  and  re-checking  every  entry,  to  detect  any  error  which  may  have 
been  made  in  the  work,  and  to  avoid  if  possible  a  "refractory"  trial  balance  at  the  end  of  the  month. 

The  following  plan  is  sometimes  substituted  for  the  re-checking  process,  and  proves  very  effective, 
especially  where  the  book-keeper  is  provided  with  an  assistant: 

A  sheet  of  paper  or  card,  called  a  "Check  Sheet,"  or  "Check  Card,"  of  about  foolscap  size,  ruled 
in  narrow  columns,  is  provided  for  each  book  from  which  posting  is  to  be  done.  Before  the  work  of 
posting  begins,  the  assistant  enters  from  the  Index  the  Ledger  folio  against  each  amount  which  is  to 
be  posted.  He  then  finds  the  account  in  the  Ledger,  and  the  book-keeper,  after  observing  that  he  has 
turned  to  the  rights  account,  ])osts  the  entry,  checking  it  thus  \/  in  the  book  from  which  it  was  posted. 
After  checking  the  entry,  he  takes  a  second  look  at  the  amount  as  it  stands  in  the  Ledger,  and,  while 
the  assistant  is  finding  the  next  account,  he  enters  it  upon  the  Check  Sheet  corresponding  with  the 
book  from  which  it  was  posted.  At  the  end  of  the  day  the  footings  of  the  several  sheets  and  the 
footings  of  the  corresponding  books  must  of  course  agree. 

The  above  plan  is  almost  an  absolute  check  upon  omissions,  upon  a  triiiisposition  of  figures  and 
upon  posting  to  the  wrong  account. 

The  illustrations  given  below  represent  the  Check  Sheets  of  the  Journal,  Sales  Book  and  Cash 
Book  for  the  previous  ten  days'  posting. 


JOURNAL  DEBIT 

1 

JOURNAL 

CREDIT  1 

CHECK  SHEET. 

CHECK  SHEET. 

300 

3363 

47 

15177 

eo 

500 

600 

7 

33 

8 

50 

2556 

14 

307 

44 

3000 

490 

25 

30 

275 

2014 

66 

3363 

47 

500 

612 

25 

100 

500 

81 

75 

812 

34 

812 

34 

100 

100 

1540 

71 

300 

81 

75 

10  303 

39 

1316 
812 
216 
100 
376 
300 

70 
34 
50 

88 
<• 

SALES   BOOK    DEBIT 
CHECK  SHEET. 


26 
129 
30 
81 
52 
30 
268 
94 

71  3 


CASH  DEBIT 
CHECK   SHEET. 


2636 

2636 

31 

30 

7 
26 
30 

5398 


CASH  CREDIT 
CHECK  SHEET. 


100 
612 
107 
600 
9 
1540 

39  69 


THEORETICAL   AND   PRACTICAL    BOOK-KEEPING. 

CONTINUED  TRIAL  BALANCE. 


135 


Folio. 

October  10. 

October  20. 

October  31. 

01 

H.  G.  Fuller, 

6000 

300 

7000 



01 

Student, 

6000 

500 

6000 

— 

01 

Bills  Keceivable, 

4681 

75 

3800 

5417 

25 

4381 

75 

6917 

25 

5667 

25 

01 

Interest, 

40 

03 

47 

75 

46 

63 

47 

75 

53 

63 

50 

08 

62 

Cowles  &  Hutchings, 

2550 

14 

100 

2556 

14 

700 

03 

W.  &  E.  Morgan, 

2014 

60 

800 

2014 

66 

•    800 

62 

Bills  Payable, 
S.  W.  Siddons, 

000 

1512 

34 

700 

1612 

34 

02 

107 

44 

307 

44 

107 

44 

307 

44 

— 

. — 

Lorrain  Mfg.  Co. 

100 

490 

25 

290 

25 

490 

25 

Brown  Bro's  &  Seaver, 

200 

275 

200 

275 

Byron  Vaile, 

012 

25 

989 

13 

— • 

— 

Scovell,  Hodges  &  Co. 

812 

34 

948 

61 

P.  M.  Keed, 

1540 

71 

2781 

65 

Hopkins  &  Weeks, 

1316 

70 

— ■ 

.._ 

Geo.  P.  Osgood, 

216 

50 

216 

50 

677 

25 

— 

— 

Merchandise, 

4875 

38 

943 

20 

7390 

39 

2475 

89 

11503 

22 

4490 

64 

Frank  Goodspoed, 

294 

75 

26 

50 

386 

294 

75 

— 

F.  E.  Warren, 

129 

51 

217 

01 

129 

51 

Larkin  &  Sprong, 

82 

20 

30 

197 

95 

82 

20 

— 

— ■ 

B.  N.  Achard, 

Welch  &  Dow, 

124 

10 

30 

Discount, 

83 

69 

13 

8 

90 

136 

32 

28 

78 

331 

88 

Expense, 

379 

25 

479 

577 

96 

Cash, 

6149 

05 

6149 

05 

262 

86 

6661 

32 

202 

86 

Hood  &  Meyers, 

S.  M.  Smith, 

82 

— 

Hackett  &  Brisbain, 

218 

75 

— 

— 

R.  Richardson, 

121 

50 

Tildeu  &  Breme, 

498 

40 

M.  M.  Eaton, 

Wm.  Gardner, 

— 

— 

STATEMENT    OCTOBER   31,   188- 


RESOURCES. 

Bills  Receivable,  ,- 1250  00 

Mdse.  Inventory, 7968  33 

Expense      "          200  00 

Cash, 6398  46 

Personal  Accounts, _ 640  80 


16457  59 


LIABILITIES. 

Personal  Accounts, 3474  41 

Fuller's  Net  Investment, 6701  42 

"       i  Net  Gain, 39167 

"       Present  Worth, 7093  09 

Student's  Net  Investment, 5498  43 

i  Net  Gain, 391  67 

"        Present  Wortli, 5890  09 

16457  59 


136  THEORETICAL   AND   PRACTICAL   BOOK-KEEPIKG. 

OCTOBER,   188-. 

1.  H.  G.  Fuller  and  Student  form  a  co-partnorship  this  day,  under  the  firm  name  of  Fuller  &  Student, 

to  engage  in  the  wholesale  business  of  Wooden  Ware  and  Grocers'  Sundries. 
The  Co-jjartnership  articles  this  day  executed,  provide  that  each  partner  shall  devote  his  entire 
time  to  the  business;  that  the  gains  and  losses  shall  be  divided  equally,  and  that  an  Interest 
account  shall  be  kept  between  the  partners. 

Note. — Make  the  above  as  a  memorandum  in  your  Journal. 

H.  G.  Fuller's  investment:  Cash  paid  in,  3636.53  (C  B.);  D.  G.  Carter's  note,  dated  September 
5  last,  at  30  days,  payable  at  City  Bank,  300.00  {J.  and  B.  B.);  Hawley  &  Co.'s  note  dated  July 
5  last,  at  90  days,  payable  at  First  National  Bank,  with  interest,  500.00  {J.  and  B.  B.);  Interest 
accrued  to  date  on  H.  &  Co.'s  note  (/.);  Cowles  &  Hutchings,  Glean,  owe  on  account, 
2556.14  {J.). 

Note. — While  it  is  expected  that  you  will  be  obliged  to  refer  occasionally  to  the  forms  as  Indicated  in  the  transac- 
tions by  the  initial  letters:  J.  Journal,  8.  B.  Sales  Book,  Ck.  B.  Check  Book,  C.  B.  Cash  Book,  and  B.  B.  Bill 
Book,  it  is  desirable  that  you  do  so  only  when  necessary,  performing  the  work  as  much  as  possible  from  the 
memoranda,  aided  by  the  explanations  for  the  various  books  given  on  page  137.  In  every  case  decide  how  you 
think  the  entry  should  be  made  before  consulting  the  forms. 

Student's  investment:  On  deposit  in  College  Bank,  to  the  credit  of  the  firm,  2636.53  (C  B.  and 
Ck.  B.  See  note  Mow) ;  E.  B.  Leighton's  note  dated  August  2nd  last,  at  60  days,  indorsed 
by  W.  D.  Soules,  payable  at  Traders'  Bank,  with  interest,  3000.  OO  {J.  and  B.  B.);  Interest 
accrued  to  date  on  above  note  (J.);  W.  &  E.  Morgan,  city,  owe  on  account,  2014.66  (/.). 

Note. — In  the  absence  of  a  Check  Book,  a  form  for  the  Check  Book  Stub  may  be  ruled  on  a  sheet  of  foolscap  paper. 

Student's  liabilities:  Note  favor  Giles  P.  Fulton,  dated  July  8  last,  at  90  days,  payable  at  College 
Bank,  with  interest,  600.00  {J.  and  B.  B.);  Interest  accrued  to  date  (/.);  due  the  following 
firms  on  account:  S.  W.  Siddons,  city,  307.44;  Lorrain  Manufacturing  Co.,  New  York, 
490.25;  Brown  Bros.  &  Seaver,  Eastport,  275.00  (J.).  • 

2.  Buy  for  cash.  Office  Safe,  200.00;  Office  Books,  37.50.     (C.  B.) 
Deposit  in  College  Bank,  cash,  2000.00.     {Ck.  B.) 

Note. — No  entry  is  made  in  the  Cash  Book  for  the  reason  explained  23-34  page  127.  ' 

Eeceive  Mdse.  from  Byron  Vaile,  Toronto,  as  per  Invoice  October  1,  on  60  days,  5^  off  in  10  days, 
612.25.     {J.) 

Note. — See  Business  Forms  on  last  pages  of  text  book,  for  illustration  of  letter  ordering  the  above  invoice,  also  see 
explanations  4-7,  page  127. 

Sales  for  cash,  per  drawer,  95.48.     (C.  E.) 

3.  Pay  Lorrain  Mfg.  Co.  cash  on  ajc,  100.00.     {C.  B.^ 

Pay  Wm.  Strong  rent  of  store  one  month  in  advance,  by  your  check  on  College  Bank,  125.00.     ( C. 
B.andCk.B.) 
Note. — See  expiations    25,    page  127. 

Sell  Frank  Goodspeed,  Waverly,  1  doz.  No.  1  Oval  Chopping  Trays,  @  5.00;  2  Glass  Cheese  Safes, 
@  4.50;  10  nests  F.  Pails,  @  1.25.     [S.  B.) 

Note. — All  sales  on  60  days  time  unless  otherwise  noted. 

Sell  F.  E.  Warren,  New  Eochelle,  3  doz.  Novelty  D.  Z.  Washboards,  @  2.50;  5  doz.  Eagle  S.  Z. 
Washboards,  @  1.75;  5  M  No.  4  Paper  Bags,  @  1.75,  less  10^;  3  doz.  13  inch  Butter  Bowls, 
@  1.75;  4  doz.  Cov.  W.  D.  Baskets,  @  2.50;  2  doz.  0.  C.  Trays  No.  2,  @  5.00;  1^  doz.  No. 
10  Featlier  Dusters,  @  20.00  and  1  doz.  No.  12,  @  26.50,  less  25  and  10^;  10  gro.  Gates' 
Matches,  @  2.70;  6  Broom  Racks,  @  2.50.     (*S'.  B.) 

Note. — See  Business  Forms  on  last  pages  of  the  text  book  for  illustration  of  above  invoice. 

Receive  of  W.  &  E.  Morgan  their  note  at  10  days,  payable  at  Traders'  Bank,  on  "jc,  500.00.  {J.  and 
B.  B.) 

Note. — Care  must  be  exercised  in  making  the  entries  in  the  Journal  and  Cash  Book,  or  errors  will  be  made  by 
placing  amounts  in  the  wrong  columns. 


*rHEOBETICAL   AND    PKACTIOAL   BOOK-KEEPIN(J,  l^T 

3.  Buy  a  New  York  draft  at  i^  exchange,  and  remit  to  Byron  Vaile  for  Invoice  September  30,  612.25, 

less  5^.     Give  your  check  on*College  Bank  to  cover  the  draft  and  exchange.     (C.  B.  and 
Ck.  B.) 

Note. — See  Business  Forms  on  last  pages  of  the  text  book  for  illustration  of  letter  accompanying  tlie  above  remit- 
tance. 

Sell  Larkin  &  Sprong,  Groveland,  30  days,  2  doz.  Wood  Shovels,  @  7.50;  25  lbs.  Cotton  Twine, 
@  24c.;  2  doz.  No.  3  Wood  Scoops,  @  4.50.     {S.  B.) 

4.  Pay  S.  W.  Siddons,  cash  on  ojc,  107.44.     {C.  B.) 

Eeceive  Mdse.   from  Scovell,   Ilodges  &  Co.,  New  York,  per  Invoice,  October  2.   on  15  days. 

812.34.     [J.) 
Eeceive  cash  for  a  note  due  to-day.     (C.  B.  and  B.  B. ) 
Deposit  cash  in  College  Bank,  2500.00.     {Ck.  B.) 
Sales  for  cash,  per  drawer,  21.19.     (0.  B.f 
Give  Brown  Bros.  &  Seaver  your  note  at  10  days,  payable  at  College  Bank,  on  '^c,  100.00.   (<7.  and 

B.B.) 

5.  Receive  Mdse.  from  P.  M.  Reed,  Boston,  per  Invoice  October  3,  on  90  days,  1540.71.     (/.) 
Sales  for  cash,  per  drawer,  62.10.     (C.  B.) 

Sell  B.  N.  Achard,  Scipio,  on  his  note  at  10  days,  payable  at  College  Bank,  10  doz.  2-Hoop  Pails, 
@  2.00;  3  doz.  Heavy  Hoop  Tubs,  @  8.75;  2  doz.  Com.  Hoop  Tubs,  @  8.50;  3  doz.  Clothes 
Pounders,  @  2.00;  10  doz.  Rolling  Pins,  @  1.25.     {S.  B.,  J.  and  B.  B.) 

Note. — Bills  Receivable  instead  of  Achard  might  have  been  debited  in  the  Sales  Book,  and  then  no  Journal  entry 
would  have  been  required.  As  now  made  the  entries  could  be  cliecked  in  both  Sales  Book  and  Journal 
to  obviate  the  necessity  of  opening  an  account  with  Achard  in  the  Ledger.  If.  as  in  this  case,  however, 
it  is  desired  to  know  at  the  end  of  the  year  the  amount  of  goods  sold  to  a  customer,  it  is  better  to  open  an 
account  with  him  and  post  all  bills,  even  though  paid  for  at  the  time  of  purchase. 

Sell  Larkin  &  Sprong,  30  days,  12  doz.  Royal  Shoe  Dressing,  @  1.00;  4  gro.  Dixon's  Stove  Polish, 

@  6.00;  3  doz.  qts.  University  Ink.  @  6.00,  10^  off.     {S.  B.) 
Sell  Welch  &  Dow,  Fairport,  for  cash,  6  gro.  Washing  Crystal,  @  2.75;  50  boxes  Crayon,  @  7c.; 

25  gro.  No.  2  Kerosene  Wick,  @  40c.     {8.  B.  and  C.  B.) 

Note. — See  note  under  sale  to  B.  N.  Achard,  above. 

6.  Eeceive  cash  for  a  note  due  to-day.     {0.  B.  and  B.  B.) 

7.  Eeceive  Mdse.  from  Hopkins  &  Weeks,  Baltimore,  per  Invoice  October  4,  on  60  days,  1316.70.   (J.) 

8.  Eeceive  from  Frank  Goodspeed,  a  draft  on  New  York  for  Invoice  3d  inst.,  26.50,  less  2^.    (C.  B.) 
Sales  for  cash,  jier  drawer,  52.12.     {C.  B.) 

Eeceive  cash  for  a  note  due  to-day.     (C.  B.  and  B.  B.) 

Sell  Frank  Goodspeed,  on  45  days,  3  doz.  N.  C.  Wringers,  @  45.00;  3  doz.  Wood  Shovels,  @  7.50; 
5  doz.  H.  H.  Tubs,  @  8.75;  2  Oil  Tanks,  @  16.00,  less  25<^;  4  doz.  Bushel  Baskets,  Oak,  @ 
7.50;  3  doz.  Horse  Brushes,  @  6.00;  5  gro.  Kinning's  Bluing,  @  8.00. 

Note. — Write  up  this  invoice  on  foolscap  paper.     See  Business  Forms  on  last  pages  of  text  book  for  illustration. 

Give  Scovell,  Hodges  &  Co.  your  note  at  10  days,  payable  at  College  Bank,  for  Invoice  October  2, 
812.34. 

9.  Eeceive  Mdse.  from  Geo.  P.  Osgood,  Chicago,  per  Invoice  October  7,  30  days,  216.50. 

Your  note  due  at  College  Bank,  has  been  charged  to  your  account.     (C.  B.,  B.  B  and  Ck.  B.) 
Sell  Welch  &  Dow,  4  doz.  qts.  University  Ink,  @  6.00,  less  10  ^;  4  doz.  II.  H.   Tubs,  @  8.75;  5 

doz.  W.  Shovels,  @  7.50. 
Draw  a  draft  on  Cowles  &  Hutchings,  Eastport,  at  30  days  sight,  and  remit  it  to  Brown  Bros.  & 

Seaver,  on  %  100.00.     (J.) 
10.  Eeceive  from  Larkin  &  Sprong,  cash  for  Invoice  October  3d,  30.00,  less  1%.     {C.  B.) 
Deposit  cash  in  College  Bank,  500.00.     (Ck.  B.) 

Eeceive  Mdse.  from  Byron  Vaile,  per  Invoice  October  7,  on  60  days,  376.88. 
Give  F.  M.  Reed  your  check  on  College  Bank  for  Invoice  October  3,  1540.71,  loss  2^;^.     (6'.  B. 

and  Ck.  B.) 
Pay  cash  for  Coal,  for  Office  use,  15.30. 
Eeceive  of  W.  &  E.  Morgan,  their  note  at  10  days,  payable  at  Traders'  Bank,  to  apply  on  ^, 

300.00.     (J.  and  B.  B.) 


138  THEORETICAL   AND    PRACTICAL    BOOKKEEPING. 

You  may  now  post  the  entries  for  the  foregoing  ten  days'  business.  See  explanations  and  illustra- 
tions on  page  134  for  using  check  sheets.  Give  each  accouni^one-fourth  of  a  page  space.  First  post 
from  the  Journal.  See  4  to  8,  page  127,  for  instructions.  See  also  the  Journal  form  on  page  128, 
showing  the  columns  footed  and  ruled.  Use  the  Ledger  folio  to  check  the  posting.  The  pages  of 
your  books  will  not,  of  course,  correspond  with  those  given  in  the  forms.  After  opening  an  account  in 
the  Ledger,  place  the  title  in  the  index,  together  with  the  number  of  the  page  iipon  which  it  is  opened. 
See  illustration  on  page  131,  also  see  explanations  on  page  127.  Next  post  from  the  Sales  Book;  see 
13-15,  page  127.    See  also  form  of  Sales  Book  on  page  129,  showing  the  Mdse.  column  footed  and  ruled. 

Balance  and  prove  the  cash  before  commencing  to  post  from  the  Cash  Book.  For  instructions,  see 
34-37  page  127.  See  form  of  Cash  Book  on  pages  130  and  131,  showing  the  manner  of  footing 
and  ruling  the  columns,  and  bringing  down  the  balance  of  cash  on  hand.  Cash  in  Safe,  1332.10; 
Balance  in  Bank,  shown  by  Check  Book  Stub,  page  130,  4816.95. 

After  you  have  completed  the  posting,  your  Ledger  should  correspond  with  the  one  given  on  pages 
132-3-4.  Next  take  a  trial  balance,  using  the  Continued  Trial  Balance  form  as  illustrated  on  page 
135.  See  40-41  page  127.  If  no  such  form  is  provided  in  your  Trial  Balance  book,  you  may  rule 
one.  The  Ledger  titles  are  all  to  be  entered  in  the  trial  balance;  but  those  which  balance  need  not  be 
extended.  The  footings  of  the  columns  are  not  given  in  the  form;  you  are  to  foot  and  prove 
them,  however,  as  heretofore.  You  need  not  rule  up  any  of  the  personal  accounts,  even  when 
settled  in  full,  but  continue  the  pencil  footings  until  the  end  of  the  month,  in  order  that  the  footing 
of  each  person's  account  in  the  Ledger  may  show  the  entire  amount  of  goods  bought  of  or  sold  to  him 
during  that  period.     Business  men  frequently  carry  out  this  plan  through  an  entire  year's  business. 

After  completing  the  trial  balance,  continue  the  work  in  the  same  manner  as  in  the  preceding  ten 
days'  business. 

Write  up  the  business  forms  wherever  called  for  by  the  Memoranda,  and  take  particular  pains  with 
the  penmanship,  spelling  and  general  appearance  of  these  documents. 

OCTOBER  1  se- 
ll.   Sales  for  cash  per  drawer,  65.30. 

Deposit  cash  in  College  Bank,  400.00. 

12.  Sell  M.  M.  Eaton,  Seneca,  on  his  note  at  15  days,  payable  at  Farmers'  Bank,  G  doz.  C.  Brooms,  @ 

3.00;  2  doz.  C.  Trays,  @  5.00;  2  doz.  N.  D.  Z.  Washboards,  @  2.-50;  10  doz.  U.  Ink,  @  G.OO 
less  12^^.     (,S'.  B.,  J.  and  B.  B.) 

13.  Student  draws  for  private  use  by  check  on  College  Bank,  500.00.     (C.  B.  atui  Ok.  B.) 

14.  Received  from  Frank  Goodspeed  cash  for  Invoice  Oct.  8,  268.25,  less  1^^. 
Leave  M.  M.  Eaton's  note  at  College  Bank  for  collection.     {B.  B.) 

Note. — In  the  column  in  the  Bill  Book  headed  "  When  and  How  Disposed  of,"  say  "  Oct.  14,  left  at  College  Bank 
for  collection." 

Receive  from  Scovell,  Hodges  &  Co.  Mdse.  per  Invoice  Oct.  9,  at  15  days,  136.27. 

Sell  F.  E.  Warren  3  doz.  Willow  Clothes  Baskets,  @  9.00;  4  doz.  Willow  Market  Baskets,  @  3.50: 

5  doz.  Cherry  Knife  Trays,  @  4.50;  3  M  Crown  Butter  Dishes,  @  10.00,  less  20  ^. 
Sell  Frank  Goodspeed  5  doz.  H.  H.  Tubs,  @  8.75;  3  doz.  Bush.  Baskets,  Oak,  @  7.50;  20  Nests 

F.  Pails,  @  1.25. 

15.  Give  Lorrain  Mfg.  Co.  your  check  on  College  Bank,  on  °jc,  90.25. 

Accept  Lorrain  Mfg.  Co.'s  draft  on  you  at  10  days  sight,  payable  at  College  Bank,  favor  of  D. 

Leary,  to  apply  on  °jc,  100.     {J.  and  B.  B. ) 
Pay  cash  for  Postage,  2. 75. 
Buy  of  Hood  &  Meyers,  City,  on  60  days,  Mdse.  per  Invoice  Oct.  15,  178.65. 

16.  Sales  for  cash  per  drawer,  136.15. 

Give  Hopkins  &  Weeks  your  check  on  College  Bank,  for  Invoice  Oct-  7,  1316.70,  less  2^5^. 
Sell  S.  M.  Smith,  City,  on  ten  days,  10  gro.  Lead  Pencils,  @  1.00;  5  doz.  Cotton  Clothes  Lines, 
@  2.00;  10  doz.  P.  B.  Dishes,  @  5.50,  less  20;;^;  1^  doz.  Feather  Dusters,  @  20.00,  less  40^. 
Receive  from  Geo.  P.  Osgood,  Mdse.  per  Invoice  Oct.  12,  30  days,  460.75. 
Receive  of  Larkin  &  Sprong,  cash  for  Invoice  Oct.  5,  52.20,  less  1$^. 
Receive  cash  for  a  note  due  to-day. 
Deposit  cash  in  College  Bank,  1500.00. 
H.  G.  Fuller  draws  for  private  use  by  check  on  College  Bank,  300.00. 


*rHEOKETlCAL   AND   PRACTICAL   BOOK-KEKPtNG.  139 

17.  Remit  Geo.  P.  Osgood  your  certified  check  on  College  Bank,  for  Invoice  Oct.  7,  216.50,  less  3^. 
KoTE. — Write  up  this  clieck  on  foolscap  paper.     See  Business  Forms,  on  last  pages  of  text  book,  for  certified  check. 

Sell  Larkin  &  Sprong  2  doz.  No.  10  F.  Dusters,  @  20.00,  less  3.")  and  10^;  5  doz.  H.  H.  Tubs,  @ 

8.75;  G  doz.  B.  Baskets,  @  7.50. 
Sales  per  cash  drawer,  162.50. 
Receive  from  Cowles  &  Hutchings  their  note  at  5  days,  payable  at  Exchange  Bank,  to  apply  on  "jc. 

600.00. 
Sell  Hackett  &  Brisbain,  Clinton,  3  doz.  N.  D.  Z.  Washboards,  @  2.60;  5  doz.  C.  K.  Trays,  @ 

4.50;  10  doz.  B.  Brooms,  @  2.00;  5  doz.  II.  H.  Tubs,  @  8.75;   10  gro.  U.  Ink,  @  6.00,  less 

10^;  6  doz.  B.  Baskets,  @  7.50;  2  doz.  No.  10  F.  Dusters,  @  20.00,  less  35<^. 
Receive  from  F.  E.  Warren  a  draft  on  New  York  for  Invoice  Oct.  3,  129.51,  less  2^^. 
Your  note  due  to-day  at  College  Bank,  charged  to  your  ofc. 

18.  Pay  Clerks'  salaries  in  full  to  date,  in  cash,  87.75. 
Deposit  in  College  Bank,  cash,  400.00. 

Give  Hood  &  Meyers  your  check  on  College  Bank  for  Invoice  Oct.  15,  178.65,  less  5^. 

H.  G.  Fuller  makes  an  additional  cash  investment  of  1000.00. 

Receive  Mdse.  from  F.  M.  Reed  per  Invoice  Oct.  14,  on  90  days,  1240.04. 

Sell  Ralph  Richardson,  Oneida,  20  gro.  G.  Matches,  @  2.70;  4  doz.  12  inch  B.  Bowls,  @  1.75;  6 
doz.  N.  D.  Z.  Washboards,  @  2.50;  2  doz.  No.  1  0.  C.  Trays,  @  5.00;  4  doz.  11.  II.  Tubs,  @ 
8.75.  Receive  his  note  at  10  days,  payable  at  College  Bank,  50.00;  balance  on  ^c,  60  days. 
{S.  B.,  J.  and  B.  B.) 

Note. — Richardson  being  debited  in  the  Sales  Book  131.00,  and  credited  in  the  Journal  .50.00,  when  these  entries  shall 
have  been  posted,  the  difference  in  his  account  will  show  the  balance  still  due. 

Receive  cash  for  a  note  due  to-day. 
Sales  per  cash  drawer,  228. 79. 

19.  Receive  cash  from  Welch  &  Dow  for  Invoice  Oct.  9,  94.10,  less  1^. 

Sell  Wm.  Gardner,  for  casli,  3i  doz.  Maud  S.  Halters,  @  7.50;  4  doz.  Curry  Combs,  @  1.50;  2 
I  doz.  Gurry  Cards,  @  1.25;  2J  doz.  Horse  Brushes,  @  6.00. 

30.    Receive  Mdse.  from  Tilden  &  Breme,  Oswego,  per  Invoice  Oct.  17,  on  60  days,  498.40. 

Deposit  Cash  in  College  Bank,  1000.00. 

Sales  per  cash  drawer,  88.45. 

Buy  for  cash,  a  New  York  draft  at  \^  exchange,  and  remit  to  Byron  Vaile  for  Invoice  Oct.  7, 
376.88,  less  5^. 

Pay  cash  for  cartage,  8.35. 

You  may  now  balance  the  Cash  Book.  The  footings  of  the  columns  on  the  debit  side  of  the  Cash 
Book  should  be  as  follows:  Sundries,  7742.86;  Mdse.,  681.19;  Bills  Receivable,  581.75;  Discount, 
67.19.  On  the  credit  side  Sundries,  3078.98;  Expense,  99.75;  Discount,  8.07.  Prove  the  cash;  see 
34-37,  page  127.     In  Safe,  422.99;  in  Bank,  as  shown  by  Check  Book,  5463.20. 

Next  post  and  take  a  trial  balance,  in  accordance  with  the  directions  given  at  the  end  of  the  first 
ten  days'  business  on  pages  134  and  138.  In  posting  to  Cash  account,  enter  on  the  credit  side  262.86,  the 
payments  of  cash  having  exceeded  the  receipts  by  that  amount  since  the  last  posting.  See  31-33, 
page  127. 

Remember  to  place  all  new  accounts  in  the  Index  as  soon  as  opened  in  the  Ledger.  Add  new 
accounts  to  the  trial  balance,  as  shown  on  page  135. 

After  completing  the  trial  balance,  continue  the  work  as  before. 

OCTOBER,  188-. 

21.    Accept  Lorrain  Manufacturing  Co.'s  draft  on  you  in  favor  of  themselves,  at  1  day  sight,  payable 
at  College  Bank,  100.00. 
Deposit  cash  in  College  Bank,  200.00. 
Sell  Frank  Goodspeed,  1  gro.  Tytler's  Axle  Grease,  @  9.00;  3  gro.  K.  Bluing,  @  8.00;  lOc  Grain 

Bags,  @  22c.  ea. ;  2  M  No.  4  Paper  B.  Dishes,  @  5.50,  less  30^. 
Your  note  due  to-day  charged  in  at  College  Bank. 


140  THEORETICAL   AND    PKAOTICAL   BOOK-KEEPING. 

22.  Receive  Mdse  from  Byron  Vaile  per  Invoice  Oct.  19th,  on  90  days,  975.00. 

Receive  of  W.  &  E.  Morgan  their  note  at  GO  days,  endorsed  by  Thos  Field,  payable  at  Traders' 
Bank,  on  %  600.00. 

Note. — Draw  up  this  note  on  foolscap  paper.  See  Business  Forms  on  last  pages,  for  illustration  of  note  with 
Endorser. 

Receive  of  S.  M.  Smith,  his  cheek  on  Flower  City  Bank,  in  payment  of  Invoice  Oct.  10,  82.00. 
Sales  for  cash,  per  drawer,  209. 14. 

23.  Sell  S.  M.  Smith,  4  doz.  Mouse  Traps,  @  50c.;  6  doz.  Taylor  Mops,  @  1.50;  ^  doz.  Novelty  C. 

Wringers,  @  45.00;  ^  doz.  No.  14  F.  Dusters,  @  30.00,  less  25  and  10^. 
Receive  cash  for  a  note  due  to-day. 
Receive  F.  E.  Warren's  check  on  Farmers'  Bank,  New  Rochelle,  for  Invoice  Oct.  14,  87.50,  less 

2^. 
Hackott  &  Brisbain  return  for  credit  2  doz.  F.  Dusters  from  Invoice  17th  inst. 

24.  Remit  Scovell,  Hodges  &  Co.  a  New  York  draft,  which  you  will  purchase  by  check  on  College 

Bank,  ?it\^  exchange,  in  payment  of  Invoice  Oct.  9,  136.27,  less  2^^. 

Note. — Write  the  above  draft  on  foolscap  paper,  and  procure  from  the  teacher  blank  letter  sheet  and  envelope,  and 
write  to  Scovell,  Hodges  &  Co.,  enclosing  the  above  remittance.  See  page  77,  also  Business  Forms  on  last  pages 
of  text  book  for  illustrations.  In  folding  the  letter,  fold  it  first  from  the  bottom  to  one-half  its  length,  or  as 
far  as  is  necessary  to  fit  the  length  of  the  envelope,  and  then  fold  from  the  side  to  one-third  its  width,  or  as  far  as 
is  necessary  to  fit  the  width  of  the  envelope. 

Sales  for  cash,  per  drawer,  115.00. 

Deposit  in  College  Bank  Currency,  500.00  and  Warren's  check,  85.75.  The  bank  deducts  25c. 
for  collection  of  check. 

25.  Sell  F.  E.  Warren  10  doz.  C.  Brooms,  @  3.50;  5  doz.  H.  II.  Tubs,  @  8.75;  8  doz.  C.  K.  Trays, 

@  4.50;  10  doz.  qts.  University  Ink,  @  6.00,  less  12^^;  5  doz.  C.  0.  Lines,  @  2.00;  10  doz. 

B.  Baskets,  @  7.50;  200  Grain  Bags,  @  20  c.  ea.;  1^  doz.  No.  14  F.  Dusters,  @  30.00,  less 
25  and  10^;  25  Nests  F.  Pails,  @  1.25;  5  doz.  W.  C.  Baskets,  @  9.00. 

Your  acceptance  due  to-day,  charged  in  at  College  Bank. 

Receive  Mdse.  from  Hopkins  &  Weeks  per  Invoice  Oct.  20th,  on  60  days,  1863.66. 
Receive  of  Cowles  &  Hutchings  their  check  on  Exchange  Bank,  200. QO,  for  payment  on  their  note 
of  600.00,  due  to-day.     They  renew  the  balance  by  giving  a  note  at  30  days,  with  interest. 

Note. — Credit  Bills  Receivable  in  Cash  Book,  200.  Enter  the  new  note  of  400.00  in  Bill  Book,  and  opposite  old 
note  in  Bill  Book  state  how  it  was  disposed  of. 

Memorandum :  Procure  from  the  teacher  letter  sheet  and  envelope,  and  write  to  Tilden  &  Breme, 
Oswego,  ordering  the  following  Mdse. :  25  doz.  No.  1  0.  C.  Trays,  25  doz.  B.  Baskets,  15 
doz.  Barrel  Covers,  20  doz.  H.  H.  Tubs,  20  doz.  Com.  II.  Tubs,  5  doz.  Novelty  C.  Wringers, 
50  doz.  "Gem"  Paper  Pails,  30  doz.  "Queen"  Paper  Pails.  {See  Business  Forms  on  last 
pages  for  illustrations.) 

27.  Receive  from  F.  Goodspeed  cash  for  Invoice  Oct.  14,  91.25,  less  2^. 

W.  &  E.  Morgan  present  Lorrain  Mfg.  Co.'s  sight  draft  on  you  for  100.00,  which  you  pass  to  the 

credit  of  their  account. 
Sales  for  cash,  per  drawer,  227.09. 
Sell  Italph  Richardson  5  doz.  N.  D.  Z.  Washboards,  @  2.50;  10  doz.  B.  Brooms,  %  2.00;    5  doz. 

C.  H.  Tubs,  @  7.42;  1^  doz.  No.  12  F.  Dusters,  @  26.50,  less  30  and  5^;  1  doz.  Novelty  C. 
Wringers,  @  45.00;  50  Grain  Bags,  @  22c. 

Give  S.  W.  Siddons  your  check  on  College  Bank,  to  apply  on  '^c,  100.00. 

Get  W.  &  E.  Morgan's  note  of  500.00,  received  22d  inst.,  discounted  at  College  Bank;  proceeds 
placed  to  your  credit.     (C.  B.,  Gk.  B.  and  B.  B.) 

Note. — Debit  Interest  Account  for  the  discount  on  the  above  note  to  avoid  entering  it  in  the  discount  column,  which 
is  intended  for  the  discount  on  prepayment  of  Invoices  of  Mdse.  only. 

Pay  Gas  Bill  to  date  in  cash,  5.40. 

Receive  Mdse.  from  Tilden  &  Breme  per  Invoice  Oct.  26,  on  60  days,  1248.17. 

28.  Receive  from  F.  E.  Warren  a  draft  on  New  York  for  Invoice  Oct.  25,  398.87,  less  2^. 
Sales  for  cash,  per  drawer,  74.25. 


THEOBETIOAL    AND    PBACTIOAL    BOOK-KEKPING.  141 

28.  Deposit  cash  in  College  Bank,  1000.00. 

Ecmit  F.  M.  Rood  a  draft  on  Boston,  which  you  will  purchase  at  College  Bank  by  check,  at  ^^ 

exchange,  in  payment  of  Invoice  Oct.  14,  1240.94,  less  2^^. 
Receive  of  Cowles  &  Hutchings  to  apply  on  their  note  of  Oct.  35,  cash,  200.00. 

Note. — Draw  up  this  note  on  foolscap  paper,  and  make  the  proper  indorsement.  See  Business  Forms  on  last  pages 
for  illustration  of  note  with  indorsement. 

Your  acceptancte  due  to-day,  charged  in  at  College  Bank. 

29.  Sell  Hackctt  &   Brisbain,  4  gro.  D."S.  Polish,  @  6.00;  3  doz.  U.  Ink,  @  6.00,  less  10^;  12  doz. 

R.  S.  Dressing,  &  1.00. 
Receive  of  Ralph  Richardson  cash  for  balance  due  on  Invoices  of  Oct.  18  and  Oct.  27,  223.03, 
less  2  ^. 

30.  Sales  for  cash,  per  drawer,  319.32. 
Deposit  cash  in  College  Bank,  450.00. 

Sell  Larkin  &  Sjiroug  10  doz.  Paper  Pails,  @'5.50;  360  lbs.  |-inch  Manilla  Rope,  @  16c.;  10 
doz.  Potato  Mashers,  @  75c.;  5  Oil  Tanks,  @  16.00,  less  25^;  10  doz.  Barrel  Covers,® 
5.00;  5  doz.  Bush.  Baskets,  @  7.50;  3  M  Crown  Butter  Dishes,  @  6.00,  less  20^;  4  doz.  No. 
10  F.  Dusters,  @  20.00,  less  35  and  10  and  5  ^. 

31.  Remit  Tilden  &  Breme  a  draft  on  New  York,  which  you  will  purchase  at  pollege  Bank  by  check, 

at  :J-^  exchange,  in  payment  of  Invoices  Oct.  17  and  Oct.  26,  1746.57,  less  3^  J^. 
College  Bank  has  collected  Eaton's  note  due  yesterday,  and  placed  same  to  your  credit  less  cost  of 

collection,  25c. 
Receive  of  Cowles  &  Hutchings,  to  balance  °fc,  cash  856.14  and  their  note  endorsed  by  D.  W. 

Powers,  at  4  months,  payable  at  Exchange  Bank;  with  interest,  1000.00. 
Receive  cash  of  Hackett  &  Bnsbain  for  Invoice  Oct.  17,  218.75,  less  Mdse.  returned  for  credit 

Oct.  23,  26.00,  and  2  ^  of  balance. 
Receive  cash  of  W.  &  E.  Morgan,  to  balance  °fc,  614.66. 
Sell  Wm.  Garaner,  30  days,  3  doz.   Curry  Combs,  @  1.50;  4  doz.  H.  Brushes,  @  6.00;  2  doz. 

Maud  S.  Halters,  @  7.50. 
Pay  clerks'  salaries  in  full  to  date,  85.50. 
Deposit  cash  in  College  Bank,  2000.00. 
Make  an  entry  for  the  interest  upon  the  following  transactions  as  provided  for  in  the  copartnership 

agreement:   H.  G.  Fuller  drew  for  private  use,  Oct.  16,  300.00.     Student  drew  for  private 

use,  Oct.  12,  500.00.     H.  G.  Fuller  made  an  additional  investment,  Oct.  18,  1000.00.     (/.)' 

Note, — *•  Debit  each  partner  interest  upon  amounts  drawn  out  by  him  from  the  time  of  such  withdrawal  to  the  time 
of  settlement,  and  credit  him  interest  upon  amounts  invested  by  him  from  the  time  of  such  investment  to  the 
time  of  settlement.  "  It  is  unneces.sary  to  compute  interest  upon  the  original  investments  when  they  are  equal, 
as  in  this  case,  because  the  interest  balance  to  each  partner's  account  would  not  be  ailected  thereby. 


INVENTORIES,  OCTOBER   31,   188-.. 

MERCHANDISE— per  Inventory  Book, 7968  33 

EXPENSE— Office  Safe,.... 200  00 

You  may  now  prove  the  cash  and  balance  the  Cash  Book.  In  Safe,  207.46;  In  Bank,  6131.00. 
The*  footings  of  the  columns  on  the  debit  side  of  the  Cash  Book  should  be  as  follows:  Sundries, 
8432.39;  Mdse,  944.80;  Bills  Receivable,  1285.50;  Discount,  95.56.  On  the  credit  side.  Sundries, 
4240.95;  Expense,  98.90;  Discount,  19.88. 

"  It  is  customary,  in  business,  to  prove  the  cash  every  day,  *hiot  necessarily  closing  the  Cash  Book, 
as  the  columns  may  be  footed  in  pencil,  and  the  proof  taken  upon  a  separate  sheet. 

After  posting  take  a  trial  balance  and  make  a  statement  giving  the  results  of  the  business,  as 
shown  in  the  form  on  page  135,  after  which  close  and  rule  up  all  the  Ledger  accounts.  Before  closing 
the  Mdse.  account  close  Discount  account  into  it.  Discount  is  only  kept  here  as  a  separate  account  to 
enable  us  to  determine  the  amount  of  allowances  upon  invoices  prepaid.  If  this  information  were  not 
desired,  Mdse.  might  be  debited  and  credited  for  the  allowances  at  the  time  of  making  them. 


142  THEORETICAL    AND   PRACTICAL    BOOK-KEEPING. 

QUESTIONS   FOR    REVIEW. 

Page  126. — 'What  is  this  set  designed  to  illustrate?  'What  advantages  are  derived  from  the 
methods  illustrated,  and  how  obtained?  'For  what  purpose  might  it  be  necessary  to  change  the  forms 
of  books  as  here  used,  and  how  could  the  change  be  made? 

Page  137. — 'What  is  the  peculiar  feature  of  the  Journal  as  used  in  this  set?  '  In  what  way  is 
the  combination  of  the  two  books  effected?  "Explain  the  use  of  the  extra  column.  'How  is 
it  posted?  *How  are  the  items  in  the  Sundries  column  posted?  'What  disposition  is  made  of  the 
Invoices?  '»-"If  pasted  in  an  Invoice  Book,  how  may  this  book  be  used?  "Explain  the  use  of  the 
Sales  book.  "  AVhat  disposition  is  made  of  the  net  amount  of  each  sale?  "What  course  is  pursued 
with  the  last  column?  ''How  posted?  "How  may  an  additional  advantage  be  secured  from  the 
•Sales  Book?  "Explain  the  use  of  the  Check  Book.  "Is  it  necessary  to  open  a  bank  account  in  the 
Ledger?  ''What  entry  is  made  for  a  deposit?  ™How  does  this  debit  the  bank?  "What  entry  is 
made  when  a  check  is  drawn?  "  IIow  does  this  credit  the  bank?  "  Is  an  entry  to  be  made  in  the  Cash 
Book  when  cash  is  deposited?  "  Why  not?  '^  When  checks  are  drawn  upon  the  bank,  in  what  other 
book  beside  the  Check  Book  is  the  entry  made?  Why?  "Explain  the  use  of  the  Cash  Book.  "  How 
arranged?  "^For  what  purpose?  "How  are  the  special  columns  posted?  '"How  are  the  items  in  the 
Sundries  columns  posted?  "  How  is  the  cash  posted?  "  How  posted  if  the  balance  of  cash  is  less  than 
at  the  last  posting?  "How  if  more?  "How  is  the  total  debit  of  cash  found?  ''The  total  credit? 
'"What  will  the  diilererice  show?  "How  is  the  cash  on  hand  found?  ""How  is  the  Bill  Book  to  be 
kept  in  this  set?  "Can  it  be  kept  as  a  principal  book?  Why  is  it  not  usually  so  kept?  "What  name  is 
given  to  the  trial  balance  used  in  this  set?  *'  What  advantage  is  derived  from  its  use?  "Describe  a 
convenient  form  for  a  Ledger  Index.  "  When  the  number  of  accounts  is  large,  what  form  of  Index  i| 
generally  used? 

Page  141. — "How  frequently  is  the  cash  proved  in  business?  **  How  may  it  be  proved  without 
closing  the  Cash  Book?  "How  is  the  interest  account  between  the  partners  adjusted?  "When  the 
original  investments  are  equal  why  is  it  unnecessary  to  compute  interest  upon  them? 

Note. — Should  the  teacher  consider  it  desirable  the  student  may  be  required  to  draw  up  all  of  the  papers  ana  forms 
m  the  foregoing  memoranda.  In  the  absence  of  an  actual  business  department  especially,  it  would  be  best  to  make  such 
a  requirement. 

Excellent  drill  for  the  student  could  also  be  secured  by  requiring  him  to  continue  the  foregoing  business  for  ten  or 
twenty  days  longer,  originating  his  own  tra)isae,iions.  if  this  plan  were  pursued,  an  amount  would  have  to  be  eissumed  for  % 
Mdse.  inventory  at  the  time  of  closing  the  books. 


RETAILER'S  BOOKS, 

(DOUBLE     ENTRY,) 

DESIGNED  FOR  RETAIL  GROCERIES,  MARKETS,  SHOPS,  ETC. 


^  The  following  arrangement  of  books  and  records  is  designed  to  illustrate  a  popular  system  of 
book-keeping  for  a  retail  business.  While  it  does  not  strictly  conform  to  the  principles  of  Double 
Entry  book-keeping,  inasmuch  as  the  Merchandise  account  is  not  made  to  show  all  of  the  purchases 
and  sales,  yet  the  final  results  are  just  as  accurate,  and  are  obtained  at  a  great  saving  of  time  and  labor. 

'  The  books  required  are  an  Order  Book,  Cash  Book,  Journal,  Personal  Ledger  and  Ledger.  The 
Order  Book  and  Personal  Ledger  are  used  as  auxiliary  books;  the  others  as  principal. 

The  '  Order  Book  is  a  cheap,  coarse  boOk,  made  usually  with  a  page  about  twelve  inches  long  and 
five  inches  wide,  and  lies  upon  the  counter.  In  it  are  entered  the  orders  as  they  are  received  during 
the  day.  *  Goods  to  be  delivered,  that  are  paid  for  when  ordered,  are  entered  regularly  in  the  Order 
Book,  and  the  word  "  Paid "  written  across  the  order.  '  If  not  paid,  the  items  are  entered  in  the 
purchaser's  account  in  the  Personal  Ledger  at  the  close  of  the  day's  business. 

"  The  Cash  Book  does  not  differ  from  the  form  already  illustrated,  and  is  used  as  a  principal  book. 
It  need  not  be  closed  oftener  than  once  a  week,  or  once  a  month  The  first  column  on  the  debit  sid<} 
is  devoted  to  cash  sales  of  Mdse. 

'  The  Journal  contains  all  entries  excepting  those  made  in  the  Cash  Book.  '  The  Journal  may  he 
dispensed  with  by  using  the  Cash  Book  as  illustrated  in  the  Cash  Method,  on  pages  110-111. 

'  The  Personal  Ledger  contains  accounts  with  customers  only,  and  is  entirely  an  auxiliary  book. 
'"  Sales  on  account  are  regarded  as  merchandise  on  hand  until  the  accounts  are  paid,  at  which  time 
Merchandise  is  credited  with  such  payments.  "  The  ordinary  Journal  ruling  is  considered  preferable 
for  a  Personal  Ledger  of  this  character,  as  it  affords  more  room  for  items.  "  All  statements  may  be 
made  out  from  the  Personal  Ledger  without  referring  to  any  other  book. 

"  The  Ledger  is  used  as  in  any  other  business. 

The  student  will  be  expected  to  post  and  take  a  Trial  Balance  at  the  end  of  the  first  week,  and 
close  the  Ledger  at  the  end  of  the  second  week.  "The  accounts  in  tlie  Personal  Ledger  will  liave  to  be 
included  in  the  inventory  in  closing  the  Merchandise  account.  "  No  Bank  account  will  be  kept  in 
the  Ledger.  '*The  Cash  Book  will  exhibit  all  cash  in  bank  and  on  hand,  as  illustrated  ir.  the 
Wholesale  Business  on  page  1-31.  "  You  will  credit  Cash  when  a  check  is  given,  and  make  no  entry 
for  deposits,  except  in  the  Check  Book, 

143 


144 


TIIEOKKTICAL    AND    PKACTICAL    BOOKKEEPING. 


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JOHN  WILSON,    119  Fourth   Street. 


188- 
Nov. 


3 
4 

6 

8 
13 


10  lt)s.  A.  C.  Sugar,  95;  4J  C.  Fish,  36 
2  J.  Coffee,  ™;  5  gal.  K.  Oil,  ^ 

Cash, 

4  lbs.  Crackers,  «;  4  l)ii.  Potatoes,  2«' 

1  bag  Salt,  20;  3  IJaisins,  36 

1  box  Starch,  <0;  2  cans  Oysters,  ^ 

1  bbl.  Apples,  200;  1  cake 'Chocolate,  33 

Cash, 

2  has.  Peaches,  2«';  10  B.  Sugar,  95;  i  j,k.  S.  Potatoes,  «• 

W.   L.  WOOD,   26  State  Street. 


1 

31 

1 

45 

2 

76 

2 

3 

80 
56 

1 

2 

35 

e 

7  1 

5 

3 

95 

76 


188- 
l>Iov. 


2 
4 

5 

8 

11 

13 


3  doz.  Eggs,  »>;  10  lbs.  B.  Sugar,  ^ 

5  bu.  E.  11.  Potatoes,  30O;  2  W.  Pails,  «» 

10  lbs.  Butter,  250;  5  Chicken,  6O;  ]  0  A.  C.  Sugar,  95 

10  G.  Sugar,  105;  5  k.  Oil,  r=;  5  C.  Fish,  ■'O;  3  lbs.  Crackers,  so 

Cash, 

1  box  Soaj),  415;  1  pt.  s.  Potatoes,  sO;  3  doz.  Eggs,  eo 

2  J.  Coffee,  70;  1  lb.  J.  Tea,  »);  1  N.  P.  Flour,  S'JS 

Cash, 


1 

3 

50 
40 

4 

05 

2 

50 

1 1 

4  5 

10 

5 

25 

9 

95 

3e 

0  5 

10 

99 

THEORETICAL    AND    PRACTICAL   BOOK-KBEPING. 


145 


ORDER  BOOK. 

NOVEMBER    1,   188- 


W.  L.  Wood,  26  State  St. 

§  doz.  Eggs,  20,  .00 

i  10  lbs.  B.  Sugar,  9,  .90 

5  bu.  E.  K.  Potatoes,  CO,         3.00 

2  W.  Pails,  20,  .40 


Mrs.  J,  H.  Smith,  18  Brown  St. 
1  lb.  Jap.  Tea,  .50 

10  "  <Jran.  Sugar,  10^,  1.05 

l^al-.  N.  0.  Molasses,  .45 


John  Wilson,  119  Fourth  St. 

10  lbs.  A.  C.  Sugar,         9^,         .95 

4i "    C.  Fish,  8,  .30 

2    "    J.  Coffee,  35,  .70 

5  gal.  K.  Oil,  15,  .75 


A.  C.  Davis,  126  Tremont  St. 
15  lbs.  G.  Sugar,  10 J,       1.58 

10    "'    B.       "  9,  .90 

S  bu.  Potatoes,  00,         3. 

5  lbs.  L.  Raisins,  13,  .65 


B.  J.  Brown,  38  St.  Paul  St. 

1  lb.  Y.  H.  Tea,  .48 

15  lbs.  A.  C.  Sugar,         9i,       1.43 

5    "    C.  Fish,  8,  .40 

1  gal.  S.  H.  Syrup,  .68 


F.  G.  Ransom,  98  Spring  St. 

10  lbs.  A.  C.  Sugar,         9^,         .95 

5  bu.  Potatoes,  60,         3. 

1  lb.  Jap.  Tea,  .50 

2  lbs.  J.  Coffee,  35,  .70 


NOVEMBER    2,   188-. 

W.  L.  Wood,  20  State  St. 

10  lbs.  Butter,  25,         2.50 

5    •'    Chicken,  12,  .60 

10    "    A.  C.  Sugar,        9i,         .95 


Mrs.  J.  H.  Smith,  18  Brown  St. 
5  bu.  Potatoes,  60,         3. 

3  doz.  Eggs,  18,  .54 

5  lbs.  Butter,  25,         1.25 


D.  Lucas,  10  Jones  St. 

10  lbs.  B.  Sugar,  9,  .90 

5  bu.  Potatoes,  60,  3. 

10  lbs.  Butter,  25,  2.50 


A.  C.  Davis,  126  Tremont  St. 

10  lbs.  Butter,  25,         2.50 

10    "    A.  C.  Sugar,        9^,         .95 

1    "    Jap.  Tea,  .50 


NOVEMBER    3,   188-. 

F.  G.  Ransom,  98  Spring  St. 

10  lbs.  Butter,  25,         2,50 

5    "    Chicken,  12,           ,60 

Igal.  K.  Oil,  ,15 


90 


70 


13 


99 


15 


05 


79 


40 


95 


25 


ORDER  BOOK. 
NOVEMBER   3,   188-. 


Mrs.  J.  H.  Smith,  18  Brown  St. 
5iS^lbs.  Chicken,  12,  .00 

10    "    B.  Sugar,  9,  .90 

5    "    Mackerel,  8,  .40 


D.  Lucas,  10  Jones  St. 
0  lbs.  Chicken,  12, 

5  doz.  Eggs,  18, 

2  Brooms,  35, 

3  W.  Pails,  25, 


.72 
.90 
.50 
.50 


B.  J.  Brown,  38  St.  Paul  St. 

1  Broom,  .25 

6  lbs.  Chicken,  12,  .72 

10    "    Gran.  Sugar,      lOJ,       1.05 


NOVEMBER   4,   188-. 

W.  L.  Wood,  26  State  St. 

10  lbs.  Gran.  Sugar,      10^,       1.05 

6  gals.  K.  Oil,  15,  .75 

5  lbs.  C.  Fish,  8,  .40 

3    "    Crackers,  10,  .30 


John  Wilson,  119  Fourth  St. 
4  lbs.  Crackers,  10,  .40 

4bu.  Potatoes,  '60,         2.40 

1  bag  Salt,  10  lbs.,  .20 


3  lbs.  Raisins, 


12, 


.30 


A.  C.  Davis,  126  Tremont  St. 

1  box  Pepper, 

.25 

1  Ex.  Lemon, 

.20 

5  K.  Oil, 

15, 

.75 

3}  lbs.  Chicken, 

12, 

.42 

D.  Lucas,  10  Jones  St. 

3  lbs.  Crackers, 

10, 

.30 

2    "    J.  Coffee, 

35, 

.70 

2  gals.  K.  Oil, 

15, 

.30 

10  lbs.  G.  Sugar, 

lOJ, 

1.05 

NOVEMBER 

5,   188-. 

Mrs.  J.  H.  Smith, 

18  Brown  St. 

3  lbs.  Crackers, 

10, 

.30 

1  Lem.  Extract, 

.20 

1  box  Pepper, 

.25 

2  gals.  K.  Oil, 

15, 

.30 

3  lbs.  C.  Fish, 

8, 

.24 

10    "    A.  C.  Sugar, 

10, 

1. 

B.  J.  Brown,  38  St.  Paul  St. 

5  bu.  Potatoes, 

60, 

3. 

3  lbs.  J.  Coffee, 

35, 

1.05 

5    "    Butter, 

25, 

1.25 

F.  G.  Ransom,  98  Spring  St. 

1  box  Pej>per,  .25 
10  lbs.  G.  Sugar,           10^,       1.05 

2  Brooms,  25,  .50 
2  W.  Pails,                    20,  .40 


90 


02 


02 


50 


30 


02 


35 


29 


30 


20 


146 


l\o\. 


1 

Student, 

JJ 

Mdsc. 

2 

a 

3 

(( 

4 

(t 

5 

it 

6 

a 

Nov.     I     7     J'alance, 


THEORETICAL    AND    PRACTICAL    BOOKKEEPING 

CASH    BOOK. 
NOVEMBER,  188-. 


Investment, 

2500 

Cash  sales, 

28 

45 

• 

li            a 

27 

90 

a            a 

is 

90 

i6              t( 

92 

32 

t<            (( 

9i 

25 

«            « 

105 

95 

395 

1 1 

2895 

77 

1C23 

75 

JOURNAL. 

NOVEMBER    1,   188- 


Mdse. 

To  H.  A.  Brewster, 
Invoice  due  i;i  IJ  days. 

1087 

50 

1087 

5C 

Mdse. 

2. 

To  Geo.  C.  Buell  &  Co. 
l.ivoice  due  ia  30  days. 

327 

50 

':     327 

i 

f.O 

Student, 

3. 

To  Mdse. 
Private  use. 

G 

50 

1 

6 

50 

Mdse. 

5. 

To  Geo.  C.  Bucll  &  Co. 
Invoice  due  iu  30  days. 

117 

50 

117 

50 

Mdse. 

To  H.  A.  Brewster  &  Co. 
Invoice  due  in  10  days. 

G3 

18 

63 

18 

Student, 

6. 

To  Mdse. 
Private  use. 

9 

i 

80 

9 

80 

XiUiyiiBTlCAl,    Ai\D    I'liACi'lOAL    BOOK-KEEPING. 

CASH    BOOK. 

NOVEMBER,   188-. 


U^ 


Nov. 

1 

Ex])ense, 

Iron  Safe, 

100 

?J 

(( 

Horse,  125;  Harness,  13, 

137 

)> 

ti 

Wagon, 

GO 

>J 

a 

P.  Scales,  35;  C.  Scales,  3C, 

61 

;j 

a 

Office  Books, 

7 

?) 

Mdse. 

Invoice  of  S.  P.  &  Co. 

072 

37 

3 

it 

Vegetables,  Poultry,  etc. 

39 

84 

?> 

Student, 

Private  use. 

10 

4 

Mdse. 

Vegetables,  Poultry,  etc. 
Crackers,  etc.,  J.  Howe  &  Son, 

36 

24 

TJ 

tj 

38 

92 

5) 

Expense, 

Hay,  Oats,  etc. 

28 

75 

5 

a 

Insurance, 

15 

» 

a 

Horseshoeing, 

2 

50 

6 

i( 

Stuart  &  Co.,  Carpenter  Work, 

36 

50 

)) 

Student, 

Private  use. 

15 

>> 

Expense, 

J.  Dunn,  10;  K.  H.  King,  12, 

32 

1373 
1633 

0'> 

Balance, 

75 

3895 

77 

MEMORANDA  OF  TRANSACTIONS. 


NOVEMBER    1,   188-. 

T  have  commenced  a  Retail  Grocery  and  Provision  Business  this  day,  in  the  store  No.  294  Main 
Street,  leased  of  J.  A.  lieed  for  five  years,  at  $600.00  per  year. 

Appropriated  sis  capital  3500.00,  as  shown  by  a  pass  book  containing  a  credit  to  my  account  at 
First  National  Bank.     (C  B.,  pages  H6-lJf7.) 

At  the  close  of  the  first  day's  business  I  find  upon  the  desk  memoranda  of  business  transacted, 
as  follows: 

Receipted  bills  for  an  Iron  Safe,  100.00;  Horse,  125.00;  Harness,  12.00;  Wagon,  60.00;  Flatfoi. 
Scales,  35.00;  Counter  Scales,  36.00;  and  Office  Books,  7.00;  purchased  by  check.     (C.  B.) 

An  invoice  of  Groceries,  Wooden  Ware,  etc.,  purchased  of  Smith,  Perkins  &  Co.,  City,  amounting 
to  725.80.     The  terms  of  purchase  are  6  months,  or  5  and  2 J  off  for  cash.     Paid  by  check.    (C.  B.) 

An  invoice  of  Groceries,  Provisions,  Canned  Goods,  etc.,  purchased  of  H.  A.  Brewster  &  Co.,  Citj 
amounting  to  1087.50.     Terms,  10  days.     {./.,  page  146.) 

Note. — In  a  business  of  this  character  considerable  mercliandise  in  the  form  of  fruit,  vegetables,  etc.,  is  daily 
purchased  of  gardeners,  and  paid  for  out  of  the  cash  drawer.  In  such  case  no  entry  is  necessary,  as  the  merchandise 
purchased  replaces  other  goods  .sold,  for  which  this  cash  was  received. 

An  exchange  of  goods  from  the  store  for  fruit,  vegetables,  etc.,  a  balance  being  paid  or  received  in  cash,  is  also  a 
common  transaction,  and  requires  no  entry,  for  the  reason  indicated  above.  A  balance  received  would  increase  the 
drawer  cash  and  be  entered  as  a  sale  at  the  end  of  the  day,  and  a  balance  paid  would  reduce  the  amount  of  drawer  sales, 
in  effect  showing  a  purchase  of  goods. 

The  following  charges  are  found  on  the  Order  Book:  Mrs.  J.  II.  Smith,  18  Brown  St.,  1  lb.  Japan 
Tea,  50c.;  10  lbs.  Gran.  Sugar,  @  10|c.;  1  gal.  N.  0.  Molasses,  45c.  W.  L.  Wood,  26  State  St.,  3  doz. 
Eggs,  @  20c. ;  10  lbs.  B.  Sugar,  @  9c. ;  5  bu.  E.  R.  Potatoes,  @  60c. ;  2  W.  Pails,  @  20c.  John  Wilson, 
119  Fourth  St.,  10  lbs.  A.  C.  Sugar,  @  die;  4|-  lbs.  C.  Fish,  @  8c.;  2  lbs.  Java  Coffee,  @  35c.;  5  gals. 
K.  Oil,  @  15c.  A.  C.  Davis,  126  Tremont  St.,  15  lbs.  Gran.  Sugar,  @  lO^c;  10  lbs.  B.  Sugar,  @  9c.; 
5  bu.  Potatoes,  @  60c.;  5  lbs.  L.  Raisins,  @  13c.  B.  J.  Brown,  38  St.  Paul  St.,  1  lb.  Y.  H.  Tea,  48c.; 
15  lbs.  A.  C.  Sugar,  @  g^c. ;  5  lbs.  C.  Fish,  @  8c. ;  1  gal.  S.  H.  Syrup,  68c.     F.  G.  Ransom,  98  Spring 


St.,  10  lbs.  A.  C.  Sugar,  @  9ic.;  5  bu.  Potatoes,  @  60c.; 
35c.     (0.  B.  and  P.  L.,  pages  lli.li.  and  lli5.) 

Note. — Give  each  account  in  the  Personal  Ledger  a  whole  page. 

Cash  sales,  shown  by  cash  in  drawer,  28.45,     (C.  B.) 


1  lb.  Jap.  Tea,  50c. ;  2  lbs.  Java  Coffee,  @ 


14S  THEORETICAL    AND    PRACTICAL    BOOKKEEPING. 

NOVEMBER    2,   188-. 

At  the  close  of  this  day's  business  I  find  the  following  memoranda  upon  the  desk: 

Invoice  of  Provisions,  Wooden  Ware,  etc.,  bought  of  Geo.  0.  Buell  &  Co.,  at  30  days,  amounting 
to  327.50.     (J.) 

I  also  find  upon  the  Order  Book  the  following:  W.  L.  Wood,  26  State  St.,  10  lbs.  Butter,  @  25c.; 
5  lbs.  Chickens,  @  12c.;  10  lbs.  A.  C.  Sugar,  @  9^c.  Mrs.  J.  H.  Smith,  18  Brown  St.,  5  bu.  Potatoes, 
@  60c.;  3  doz.  Eggs,  @  18c.;  5  lbs.  Butter,  @  25c.  D.  Lucas,  10  Jones  St.,  10  lbs.  B.  Sugar,  @  9c.; 
5  bu.  Potatoes,  @  60c.;  10  lbs.  Butter,  @  25c.  A.  C.  Davis,  126  Tremont  St.,  10  lbs.  Butter,  @  25c.; 
10  lbs.  A.  C.  Sugar,  @  9^0.;  1  lb.  Jap.  Tea,  50c.     (0.  B.  and  P.  L.) 

Cash  sales  for  the  day,  27.90.     {C.  B.) 

NOVEMBER   3.  188-. 

At  the  close  of  business  this  day  I  find  the  following  memoranda  upon  the  desk: 
Slip  on  a  spindle  showing^that  I  have  purchased  Vegetables,  Poultry,  Butter,  etc.,  of  a  farmer,  by 
check,  to  the  amount  of  39.84.     (C.  B.) 

Note. — An  entry  should  be  made  of  this  transaction,  as  omitting  it  would  cause  a  deficiency  in  cash.  Only  such 
merchandise  as  is  paid  for  out  of  the  drawer  with  the  proceeds  of  current  sales  should  be  omitted. 

The  following  orders  are  found  upon  the  Order  Book:  F.  G.  Rmsom,  98  Spring  St.,  10  lbs.  But- 
ter, @  25c.;  5  lbs.  Chickens,  @  12c.;  1  gal.  K.  Oil,  15c.  Mrs.  J.  H.  Smith,  18  Brown  St.,  5^  lbs. 
Chickens,  @  12c.;  10  lbs.  B.  Sugar,  @  9c. ;  5  lbs.  Mackerel,  @  8c.  D.  Lucas,  10  Jones  St.,  6  lbs. 
Chickens,  @  12c. ;  5  doz.  Eggs,  @  18c. ;  2  Brooms,  @  25c. ;  2  W.  Pails,  @  25c.  B.  J.  Brown,  38 
St.  Paul  St.,  1  Broom,  25c.;  6  lbs.  Chickens,  @  12c.;  10  lbs.  G.  Sugar,  @  lO^c.  (0.  B.  and  P.  L.) 
J^  The  cash  sales  for  the  day  have  been  48. 90,  which  includes  amounts  paid  in  on  account  by  Mrs. 

J.  H.  Smith,  5.00;  John  Wilson,  to  balance  %  2.76;  and  A.  C.  Davis,  5.00.     (C.  B.  and  P.  L.) 

Note. — Foot  Wilson's  account  and  rule  it  up.     See  Mrs.  J.  H.  Smith's  account,  page  144. 

I  have  appropriated  10.00  cash,  and  goods  from  the  store  amounting  to  6.50,  to  my  private  use. 
(C.B.andJ.) 

NOVEMBER   4.  188-. 

The  following  memoranda  was  found  upon  the  desk  at  the  close  of  this  day:  A  slip  showing  that 
I  have  bought  Vegetables,  Poultry,  Butter,  etc.,  of  farmers,  by  checks,  amounting  to  36.24.  An  invoice 
of  Crackers  from  J.  Howe  &  Son,  38.92;  paid  by  check.  A  bill  of  28.75  for  Hay,  Oats  and  Straw, 
for  horse;  paid  by  check.     (C.  B.) 

I  find  the  following  upon  the  Order  Book:  W.  L.  Wood,  26  State  St.,  10  lbs.  G.  Sugar,  @  lOJc.; 
5  gals.  K.  Oil,  @  15c.;  5  lbs.  C.  Fish,  @  8c.;  3  lbs.  Crackers,  @  10c.     John  Wilson,  119  Fourth  St., 

4  lbs.  Crackers,  @  10c. ;  4  bu.  Potatoes,  @  60c.;  1  bag  Salt,  10  lbs.,  20c.;  3  lbs.  Raisins,  @  12c. 
A.  C.  Davis,  126  Tremont  St.,  1  box  Pepper,  25c.;  1  Lemon  Ext.,  20c.;  5  gals.  K.  Oil,  @  15c.;  3^ 
lbs.  Chicken,  @  12c.  D.  Lucas,  10  Jones  St.,  3  lbs.  Crackers,  @  10c. ;  2  lbs.  J.  CofEee,  @  35c.;  2  gals. 
K.  Oil,  @  15c.;  10  lbs.  G.  Sugar,  @  lO^c.     (0.  B.  and  P.  L.) 

Received  payments  from  the  following  customers  on  '^c,  shown  by  slips  on  a  spindle:  D.  Lucas, 
10.00;  F.  G.  Ransom,  in  full,  8.40  (rule  up  his  account);  A.  C.  Davis,  6.00. 

Cash  sales  for  the'day,  67.92,  which,  added  to  payments  on  «ifc,  make  the  entire  credit  to  Mdse. 
for  the  day,  92.32.     {C.  B.  and  P.  L.) 

NOVEMBER   5,   188- 

At  the  close  of  this  day  I  find  the  following  memoranda  on  the  desk:  Invoice  of  Groceries,  from 
Geo.  C.  Buell  &  Co.,  117.50;  terms,  30  days.  (J.)  Invoice  of  Groceries,  from  H.  A.  Brewster  &  Co., 
63.18;  terms,  10  days.  {J.)  A  Policy  of  Insurance  on  stock  and  fixtures  of  1500.00;  Premium,  1%, 
paid  by  check.   (C.  B.)     Receipted  bill  for  Shoeing  Horse,  2.50.   (C.  B.) 

The  following  is  found  on  the  Order  Book:  Mrs.  J.  H.  Smith,  18  Brown  St.,  3  lbs.  Crackers, 
@  10c. ;  1  Lem.  Ext.,  20c.;  1  pkg.  Pepper,  25c.;  2  gals.  K.  Oil,  @  15c.;  3  lbs.  0.  Fish,  @  Be;  10  lbs. 
A.  C.  Sugar,  @  10c.     B.  J.  Brown,  38  St.  Paul  St.,  5  bu.  Potatoes,  @  COc;  3  lbs.  J.  Coffee,  @  35c.; 

5  lbs.  Butter,  @  25c.     F.  G.  Ransom,  98  Spring  St.,  1  pkg.  Pepper,  25c.;  10  lbs.  Gran.  Sugar,  @ 


THEORETICAL    AND    PRACTICAL    BOOK-KEEPING.  149 

lOic;  2  Brooms,  @  25c.;  2  W.  Pails,  @  20c.  P.  J.  Warner,  19  Wood  St.,  1  lb.  Jap.  Tea,  00c. ;  10 
lbs.  G.  Sugar,  @  lO^c;  1  gal.  K.  Oil,  15c.;  5  lbs.  Crackers,  @  10c. ;  5  bu.  Potatoes,  @  60c.  {0. 
B.  and  P.  L.) 

The  following  customers  paid  on  «(;:  Mrs.  J.  H.  Smith,  5.00,  and  W.  L.  Wood,  10.00.  Cash 
sales,  per  drawer,  77.25,  with  payments  on  "fc  added  make  entire  credit  to  Mdse.  92.25.  (6'.  B.  and 
P.L.) 

NOVEMBER  6,   188-. 

The  following  memoranda  is  found  upon  the  desk  at  the  close  of  this  day's  business:  Receipted 
bill  of  Stuart  &  Co.,  for  carpenter  work  on  counters  and  bins,  of  26.50;  paid  by  check.    (C.  B.) 

Slips  in  the  cash  di'awer  showing  that  I  have  appropriated  15.00  cash  and  9.80  in  goods  from  the 
store,  and  that  I  have  paid  J.  Dunn  and  E.  H.  King,  clerks,  10.00  and  12.00  respectively,  for  salaries 
for  week.     (C.  B.  and  J.) 

Cash  sales,  shown  by  cash  and  slips  in  drawer,  105. 95. 

I  find  the  following  unpaid  orders  upon  the  Order  Book:  John  Wilson,  119  4th  St.,  1  box  Starch, 
G  lbs.,  40c.;  2  cans  Oysters,  @  30c.;  1  bbl.  Apfiles,  2.00;  1  cake 'Chocolate,  35c.  D.  Lucas,  10  Jones 
St.,  I  lb.  Pepper,  @  30c.,  15c.;  1  pk.  Sweet  Potatoes,  50c.;  5^  lbs.  0.  Fish,  @  8c.  1  Lem.  Ext.,  20c.; 
1  10-lb.  bag  Salt,  20e.  L.  J.  Seymour,  19  Beach  St.,  3  doz.  Eggs,  @  18c.;  2  cans  Oysters,  @  30c.;  4 
lbs.  Crackers,  @  10c. ;  2  bu.  Potatoes,  @  60c.  F.  Woodbury,  16  Locust  St.,  2  Brooms,  @  25c.;  3 
bu.  Potatoes,  @  60c.;  5^  lbs.  Chicken,  @  12c.;  4  lbs.  Crackers,  @  10c. ;  1  bbl.  Apples,  2.00.  (0.  B. 
and  P.  L. ) 

Note. — You  will  now  close  the  Cash  Book,  post  and  lake  a  Trial  Balance.     Give  each  account  one-fourth  of  a  page 
space.     Balance  of  cash,  as  shown  by  Cash  Book,  1623.75. 

NOVEMBER   8,   188-. 

The  following  memoranda  appear  upon  the  desk  at  the  close  of  this  day:  Receipted  bill  for  a  ton 
of  Coal  for  use  of  store,  5.75;  paid  by  check.  Bill  of  W.  Moran  for  Stove,  Coal  Hod,  etc.,  bought  on 
"jc,  41.50.  Livoice  of  goods  bought  of  H.  A.  Brewster  &  Co.,  at  10  days,  amounting  to  217.50.  Horse 
bought  for  use  of  store,  by  check,  85. 00. 

The  following  appear  upon  the  Order  Book:  Mrs.  J.  IL  Smith,  18  Brown  St.,  1  pk.  S.  Potatoes, 
50c.;  1  10-lb.  bag  Salt,  20c.;  1  W.  Tub,  80c.;  1  bbl.  Apples,  2.00.  W.  L.  Wood,  36  State  St.,  1  box 
Soap,  4.15;  1  pk.  S.  Potatoes,  50c.;  3  doz.  Eggs,  @  20c.  B.  J.  Brown,  38  St.  Paul  St.,  5  lbs.  L. 
Raisins,  @  13c.;  1  bbl.  Apples,  2.00;  1  lb.  Jap.  Tea,  50c.;  1  Lem.  Ext.,  20c.  A.  C.  Davis,  126  Tre- 
niont  St.,  1  W.  Tub,  80c.;  10  lbs.  A.  C.  Sugar,  @  10c. 

The  following  amounts  were  paid  on  "jc:  Mrs.  J.  H.  Smith,  in  full,  4.54;  John  Wilson,  5.00; 
B.  J.  Brown,  10.00.     Cash  sales,  including  payments  on  "jc,  93.82. 

NOVEMBER   9.  188-. 

Paid  for  new  Harness  by  check,  24.00.  Paid  cash  for  building  Coal  Bin,  2.00,  and  for  Lumber  for 
same,  1.75. 

Order  Book:  D.  Lucas,  10  Jones  St.,  3  doz.  Eggs,  @  20c.;  10  lbs.  B  Sugar,  @  9c. ;  1  box  Soap, 
4.15;  2  lbs.  L.  Raisins,  @  12c.  P.  J.  Warner,  19  Wood  St.,  1  pk.  S.  Potatoes,  50c.;  1  W.  Tub,  80c.; 
10  lbs.  B  Sugar,  @  9c.;  6  lbs.  Chickens,  @  12c.;  1  bbl.  Apples,  2.00.  L.  J.  Seymour,  19  Beach  St., 
1  bbl.  N.  C.  Flour,  8.75;  1  pk.  S.  Potatoes,  50c.;  1  box  Soap,  4.15.  F.  Woodbury,  16  Locust  St.,  3 
lbs.  L.  Raisins,  @  13c.;  1  W.  Tub.,  80c.;  1  gal.  N.  0.  Molasses,  45c.;  10  lbs.  Gran.  Sugar,  @  lO^c. 
Mrs.  J.  H.  Smith,  18  Brown  St.,  10  lbs.  G.  Sugar,  @  lOJc. ;  4  lbs.  Chicken,  @  12c.;  2  cans  Oysters, 
@  30c. 

Cash  Sales,  93.18. 

NOVEMBER,   10,  188-. 

Drew  15.00  cash,  for  private  use,  and  ajjpropriated  14.60  in  goods. 

Order  Book:  P.  G.  Ransom,  98  Spring  St.,  1  box  Soap,  4.15;  2  lbs.  Coffee,  @  32c.;  1  W.  Tub, 
80c.;  P.  J.  Warner,  19  Wood  St.,  1  Lem.  Ext.,  20c.;  10  lbs.  A.  C.  Sugar,  @  10c. ;  1  gal.  N.  0.  Molasses, 
45c.;  1  bbl.  N.  P.  Flour,  8.75.  B.  J.  Brown,  28  St.  Paul  St.,  1  bbl.  N.  P.  Flour,  8.75;  2  W.  Pails, 
@  30;  1  Basket,  18c.  L.  J.  Seymour,  19  Beach  St.,  2  cans  Oysters,  @  30c.;  1  Lem.  Ext.,  20c.;  4^ 
Jbs.  Chickens,  @  12c.;  10  lbs.  G.  Sugar,  @  lO^c. 

Payments  on  account,  L.  J.  Seymour,  15.00;  F.  Woodbury,  in  full,  8.05;  D.  Lucas,  7.00;  P.  J. 
Warner,  20.00.     Cash  sales,  including  payments  on  account,  136.27. 


150  THEOBETICAL    AND    PKACl'ICAL    BOOK  KEEPiSG. 

NOVEMBER  11,  188-. 

I  find  upon  the  desk  the  following:  A  receipted  statement  from  H.  A.  Brewster  &  Co.,  of  Invoice 
of  1st  inst.,  paid  by  check,  1087.50. 

Order  Book:  P.  Woodbury,  IG  Locust  St.,  1  bbl.  N.  P.  Flour,  8.75;  1  pk.  S.  Potatoes,  50c.;  2 
W.  Pails,  @  20c.  L.  J.  Seymour,  10  Beach  St.,  10  lbs.  B.  Sugar,  @  9^0. ;  3  doz.  Eggs,  @  20c.;  2  W. 
Tubs,  @  80c.;  1  bbl.  Apples,  2.00.  Mrs.  J.  H.  Smith,  18  Brown  St.,  1  bbl.  N.  P.  Flour,  8.75;  2  lbs. 
R.  Coffee,  @  32c.  W.  L.  Wood,  26  State  St.,  2  lbs.  J.  Coffee,  @  35c.;  1  lb.  Jap.  Tea,  50c.;  1  bbl.  K 
P.  Flour,  8.75. 

Payments  on  account,  B.  J.  Brown,  10.00;  F.  G.  Ransom,  5.00.  Cash  sales,  including  payments 
on  accounts,  141.23. 

NOVEMBER,   12,   188-. 

Paid  casli  for  graining  counters  and  bins,  11.75.     Bought  Fruit,  Poultry,  &c.,  by  check,  32.15. 

Order  Book:  P.  J.  Warner,  19  Wood  St.,  1  bbl.  Apples,  2.00;  1  basket  Peaches,  1.50;  10  lbs. 
Concord  Grapes,  @  4c.;  10  Ujs.  Gran.  Sugar,  @  lO^c.  D.  Lucas,  10  Jones  St.,  10  bu. ' Potatoes,  @ 
60c.;  i  bu.  S.  Potatoes,  1.20;  2  cans  Oysters,  @  30c.;  4}  lbs.  Chickeens,  @  12c.  John  Wilson, 
119  4th  St.,  2  baskets  Peaches,  @*1.20;  10  lbs.  B.  Sugar,  @  9ie.;  1  pk.  S.  Potatoes,  60c.  A.  C. 
Davis,  126  Tremont  St. ,  5  ll)s.  Chickens,  @  12c. ;  2  cans  Oysters,  @  30c. ;  2  lbs.  Crackers,  @  12c. ;  2 
baskets  Peaches,  @  1.20;  2  bu.  Potatoes,  @  60c. 

Payment  on  account,  Mrs.  J.  H.  Smith,  10.00.     Cash  Sales,  including  payment,  168.83. 

NOVEMBER  13,   188-. 

Paid  cash  for  Horseshoeing,  2.50;  clerks'  salaries  for  week,  10.00  and  12.00;  Letter  Heads  and 
Envelopes,  2.00;  and  Postage,  30c. 

Order  Book:  A.  C.  Davis,  126  Tremont  St.,  1  bbl.  N.  P.  Flour,  8.75;  1  pk.  S.  potatoes,  60c.; 
4i  lbs.  C.  Fish,  @  8c.  F.  G.  Ransom,  98  Spring  St.,  6  lbs.  Mackerel,  @  6-Jc. ;  2  cans  Oysters,  @  30c.; 
1  bbl.  Apples,  2.00;  3  lbs.  L.  Raisins,  @  13c.  John  Mead,  103  Smith  St.,  1  bbl.  N.  P.  Flour,  8.75; 
4  bu.  Potatoes,  @  60c. ;  1  can  Oysters,  30c. ;  2  lbs.  Java  Coffee,  @  36c. ;  1  lb.  Japan  Tea,  60c. ;  1  box 
Soap,  4.15;  1  bbl.  Apples,  2.00. 

Payments  on  account,  A.  C.  Davis,  10.00;  W.  L.  Wood,  10.00;  John  Mead,  15.00;  B.  J.  Brown, 
in  full,  2.99.     Cash  sales,  including  payments,  163.19. 

Having  now  conducted  the  business  two  weeks,  I  have  determined  to  close  the  accounts  showing 
gains  and  losses,*  and  ascertain  the  result  of  the  venture. 

RESOURCE   INVENTORIES. 

Note. — Since  the  sales  of  merchandise  on  account  are  not  credited  to  Mdse.  account  when  made,  it  is  apparent 
that  the  balance  of  all  the  accounts  in  the  Personal  Ledger  should  be  included  in  the  Inventory. 

MERCHANDISE— in  Store, .-. 1640  85 

"  Personal  Ledger:— F.   Woodbury,  9.L5;    L.  J.   Seymour,   8.68; 

Mrs.  J.  II.  Smith,  1.52;  W.  L.  Wood,  6.65;  John  Wilson,  5.66;  A.  C.  Davis, 
7.25;  F.  G.  Ransom,  6.17;  D.  Lucas,  10.09;  P.  J.  Warner,  5.57;  John  Mead, 

3.92, - * -   -         C5  16 

1706  01 

EXPENSE— 2  Horses,  310.00;    1  Wagon,  66.00;  P.  Scales,  35.00;  C.  Scales,  26.00;  2  Har- 
nesses, 30.00;  Hay,  Oats,  &c.,  20.00, -_ 487  00 

LIABILITY  INVENTORY. 

EX PE N  SE— One-half  Month's  Rent  unpaid,  to  be  debited  to  Expense, 25  00 

Net  Gain,  100.30;  Balance  of  Cash,  11;;8.57. 

QUESTIONS  FOR  REVIEW. 

Page  143. — 'To  what  kind  of  business  is  this  arrangement  of  books  adapted?  'What  books  arc 
required?  '  Describe  the  Order  Book.  *  How  are  goods  marked  in  the  Order  Book  that  are  paid  for 
when  pitrchased?  'When  are  the  entries  in  the  Order  Book  posted?  'Describe  the  Cash  Book. 
'  What  does  the  Journal  contain?  '  How  may  the  Journal  be  dispensed  with?  *  Describe  the  Person:;! 
Ledger.  '"How  are  sales  on  account  regarded?  ".Why  is  the  ordinary  Journal  ruling  preferable  for 
a  Personal  Ledger?  "  From  what  book  will  statements  of  customers'  accounts  be  made?  "  How  is  the 
Ledger  used?  "  How  are  the  accounts  in  the  Personal  Ledger  treated  in  closing  the  Ledger?  "  Why 
is  no  Bank  account  in  the  Ledger  necessary?  '°  What  will  the  Cash  Book  exhibit  if  no  Bank  account 
is  kept?    "  How  are  deposits  and  checks  entered? 


MANUFACTURING. 


The  following  arrangement  of  hooks  is  similar  in  all  essential  particulars  to  that  of  one  of  the 
most  extensive  furniture  manufacturing  firms  in  America,  and  was  selected  on  account  of  its  exceeding 
simplicity  and  completeness. 

'  The  books  required  are  a  Sales  Book,  Cash  Book,  Journal  and  Ledger  as  principal  hooks,  and  a 
Hands  Eegister  and  Bill  Book  as  auxiliaries. 

In  an  extensive  business  a  book  called  a  Tickler  is  sometimes  kept  to  record  the  maturity  of  bills 
purchased  on  time  on  account.  This  book,  as  ordinarily  used,  contains  columns  for  the  date  of  the 
invoice,  the  purchaser's  name,  his  address,  the  terms,  the  day  of  maturity,  the  amount  and  remarks. 
A  number  of  pages  are  set  aside  for  each  month  of  the  year,  and  all  bills  falling  due  in  any  month  are 
entered  in  the  space  provided  for  that  particular  month. 

*  The  Sales  Book  contains  all  sales  on  account,  giving  the  articles,  terms  of  sale  and  amounts. 
'  The  purchasers  are  debited  direct  from  the  Sales  Book  with  the  amount  of  each  sale,  *  and  Mdse. 
account  is  credited  with  the  daily,  weekly  or  monthly  footing. 

'  The  Cash  Book  does  not  vary  from  the  ordinary  form,  excepting  that  the  debit  column  on  the  left 
hand  page  is  devoted  to  the  cash  sales  of  merchandise.  '  All  "  Eegular  "  bills  described  in  the  Mem- 
oranda, have  four  months  to  run;  but  if  the  purchaser  chooses  to  settle  within  thirty  days,  he  is 
allowed  a  discount.  '  Instead  of  crediting  the  purchaser's  account  in  the  Cash  Book  with  the  net 
amount  of  cash  received,  and  in  the  Journal  with  the  discount,  the  purchaser  is  credited  in  the  Cash 
Book  for  the  entire  amount  of  the  settlement  and  Discount  account  is  debited  for  the  discount,  on  the 
other  side  of  the  Cash  Book.  See  Cash  Book,  pages  153-3.  '  Mdse.  account  is  credited  with  the 
footing  of  the  Mdse.  column  in  the  Cash  Book,  whenever  the  Cash  Book  is  balanced.  "  The  cash 
should  be  proved  every  day  in  pencil,  but  the  Cash  Book  need  not  be  balanced  oftener  than  once  each 
week. 

'°  The  Journal  contains  only  entries  that  cannot  properly  be  made  in  the  other  books. 

"  The  Hands  Eegister  contains  the  weekly  earnings  of,  and  payments  to,  all  employees.  A  column 
is  ruled  at  the  extreme  left  of  the  left  hand  page  for  the  names  of  the  hands,  and  the  remainder  of  the 
page  is  divided  into  as  many  double  money  columns.  Dr.  and  Cr.,  as  the  size  of  the  book  will  permit, 
similar  to  the  Continued  Trial  Balance.  The  employees' time  is  "  made  up  "from  the  Foreman's 
time-book,  and  the  amount  due  each  is  entered  in  the  first  vacant  Cr.  Column  opposite  his  name. 
When  they  have  been  paid,  the  amount  each  has  received  is  placed  in  the  first  Dr.  column  opposite  his 
name,  thus  balancing  the  column.  The  footing  of  the  H.  E.  is  entered  to  Labor  account  on  the  right 
hand  side  of  the  Cash  Book. 

In  this  set  the  entire  investment  is  credited  to  Stock,  as  explained  in  the  note  at  the  bottom  oi 
page  44. 

i51 


152 


THEOKETIOAL   AMD   PRACTICAL    BOOKKEKPIlfG. 


CASH  BOOK. 

DECEMBER,  188-. 


DATE. 

Folio. 
50 

HDSB. 

SUNDRIES. 

Dec. 

1 

stock, 

Cash  in  Safe, 

311 

14 

Bill  to  J.  Smith,  Chamber  Suit, 

36 

"      Mrs.  Wood,  Pat.  Rocker, 

33 

"      AV.  Brown,  Parlor  Suit, 

144 

2 

51 

C.  A.  Graves, 

Reg.  bill  of  Nov.  3,  less  disct. 
Bill  to  B.  Jones,  Pat.  Rocker, 

Wal't  H.  Rack, 
Bunch  of  Cane, 

23 

38 

953 

80 
8  0 

1430 

85 

JOURNAL. 

DECEMBER    1,   188- 


Folio. 


Resources  of  C.  J.  Huntington  &  Co. 

To  Stock, 


Sundries, 
Real  Estate, 

Merchandise, 


Manufactory,  18000;  Warehouse,  34000. 


Machinery  and  Tools, 
Office  Fixtures, 
First  National  Bank, 
Bills  Receivable, 


Manufactured,  47,500;  Lumber,  38,000; 
Hardware,  1400;  Fabrics,  etc.,  1700; 
Varnishes,  Oils,  etc.,  350. 


Safe,  Desks,  etc. 
On  deposit, 


J.  L.  Brown's  note, with  int.  per  B.  B.,  805. 

S.  II.  Parker's  "          "            "  950. 

D.  M.Willard's"       •"             "  1744.50 

J.B.Andrews'  "          "             "  428.15 
Interest,                                      On  above  notes  to  date, 

C.  A.  (i  raves.                               Bill  of  Nov.  3,  R. 
E.  S.  Smith,                                   "          "    5, 

E.  S.  Smith,                                    "          "     5,  Net. 

Note. — You  will  complete  this  entry  and  continue  the  Journal  entries  as  illustrated  above. 


148137 

43000 

78950 

9000 

850 

448G 

84 

3987 

65 

39 

79 

1436 

85 

1153 

85 

217 

43 

13 


HANDS   REGISTER. 


DECKMBEK  6. 

DECEMBER  13. 

DECEMBER  20. 

DR. 

CR. 

DB. 

Cll. 

DR. 

CR. 

Neir, 

10 

50 

10 

50 

Brown, 

11 

75 

11 

75 

Wilson,  J. 

13 

80 

13 

80 

Wilson,  D. 

6 

50 

G 

50 

Meyer, 
Johnson, 

16 
5 

90 

16 
5 

90 

Lyman, 
Mosier, 

8 

30 

8 

30 

14 

50 

14 

50 

Thayer, 
Pease, 

14 

12 

50 
25 

14 
12 

50 
25 

Bartlett,  Foreman, 

35 

25 

Hyatt,  Book-keeper, 
Morey,  Ass't  Book-keeper, 
Hackett,  Salesman, 

30 

8 
18 

30 

8 
18 

Pomeroy,       " 

20 

20 

^ 

314 

314 

■ 

THEOKETICAL    AND    PRACTICAL   BOOKKEEPING. 


ihB 


CASH   BOOK. 

DECEMBER,   188-. 


DATE. 

Folio. 
53 

SUNDRIES. 

TOTAL. 

Dec. 

8 

Discount,                                  C.  A.  Graves,  o%  on  1436.85, 

71 

84 

jj 

54 

Mdse.                                        3500  ft.  Wal't,  (a)  70, 

Note.— Continue  the  entries  in  the  Cash  Book  as  liere  illustrated. 

245 

SALES   BOOK. 

DECEMBER    1,   188 


Folio, 


Holdridge  &  Gray,  Medina. 
1  No.  33  Wal't  Bed, 

1  No.  33      "     Wood  Top  Dresser, 

2  "     Towel  Hacks, 

2  No.  80  Chairs, 
12  No.  49^     " 
12  No.  57       " 

John  H.  King,  City. 

6  No.  36  Chairs,  Maple, 

Geo.  C.  Lyon,  Fair  Haven. 

3  Best  S.  B.  Beds, 
3  High  H.  D.  Cott, 

3  Low  do. 

1  Imp.  Congress  Chair, 
24  No.  72  Light  Chair, 
12  No.  72  Dark 

4  No.  61 


E. 

it 
(t 

Net. 

i  i 
Si 

Net. 
Net. 


10 

50 

17 

1 

65 
92 

29 

15 

9 

24 

10 

6 

30 

7 

65 

7 

20 

2 

85 

11 

5 

50 

1 

92 

42 

15 
92 
80 


42 


LEDGER. 

C.  A.  GRAVES,    Brockport. 


188- 

ft '-  ■- 

188- 

Nov. 

3 

J. 

K. 

1436 

85 

Dec. 

2 

C.  B.,  bi  ofE, 

1436 

85 

Dec. 

3 
5 

S.  B. 

a 
(( 

it 

Net. 

(6 

54 

3 

19 

50 
08 
35 

E.  S.  SMITH,   North  Wilson. 

188- 

188- 

i 

Nov. 

5 

5 

J. 

R. 

Net. 

1153 
217 

85 
43 

Dec. 

4 

C.  B.,  5^  off, 

1371 

28 

WARREN  &  FRANCIS,  Jamestown 

188- 

188- 

Nov. 

7 

J. 

•   Net. 

216 

40 

Dec. 

6 

C.  B. 

216 

40 

Dec. 

3 
5 

S.  B. 

(i 
it 

R. 

Net. 

E. 

Net. 

12 
13 
48 
34 

50 
50 

154  THEORETICAl,    AND   PRACTICAL   BOOK-KEEPING. 

DECEMBER    1,    188-. 
Eesourccs  of  C.  J.  Huntington  &  Co.,  Furniture  Manufacturers: 

Rkal  Estate:     Manufactory,  18000.00;  Warehouse,  24000.00.     Total,  42000.00.     (J.) 
Mekchandise:     Manufactured,  47500.00;    Lumber,  28000.00;    Hardware,  1400.00;  Fahrios,  &c., 

irOO. 00;  Varnishes,  Oil  &c.,  350.00.     Total,  78950.00.     (J.) 

Machinery  and  Tools,  9000.00.   (J.)     Office   Fixtures,  Desks   &c.,  850.00.   (J.)     First  National 

Bank,  on  deposit,  4480.84.   (/.  The  Bank  account  is  here  kept  in  the  Ledger,  hut  may  he  kept  in  the 

Check  Book  if  preferred.)     Cash  in  Safe,  211.14.  (C.  B.) 

Bills  Receivable:     Note  of  J.  L.  Brown,  Tonawanda,  at  3  mos.  from  Sept.  1st,  witli  interest, 

865.00.     Note  of  S.  H.   Parker,  Great  Bend,  at  3  mos.  from  Sept.  Gth,  with  interest,  950.00,     Note 

of  D.    M.    Willard,  Grand   Haven,  at  2   mos.  from   Oct.   19th,  with   interest,  1744.50.     Note   of  J. 

B.  Andrews,  Salem,  at  3  mos.  from  Nov.  15th,  with  interest,  428.15.     Total,  3987.65.   (.7.  and  B.  B.) 

Interest  accrued  on  above  notes,  39.79.    (</.) 

Personal  Accounts   {See  Note  below):    C.  A.    Graves,  Brockport,  Mdse.  bought  on  Regular 

terms,    Nov.  3,    1436.85.     E.    S.  Smith,  North  Wilson,   Mdse.    bought   Nov.   5.    Regular,    1153.85; 

Net,  217.43.     Warren  &  Francis,  Jamestown,  Mdse.  bought  Nov.  7;  Net,  216.40.     John.  H.   King, 

City,  Mdse.  bought  Nov.  10;  R.,  184.30;  Net,  195.10.     Covert  Bros.,  Oxford,  Mdse.  bought  Nov.  13; 

R.,   1423.00.     Geo.  C.  Lyon,  Fair  Haven,  Mdse.  bought  Nov.  16;  R.,  83.18;  Net,  41.12.     Holdridge  & 

Gray,   Medina,  Mdse.  bought  Nov.  19;  R.,  234.50;  Net,  1117.95.     W.  J.  Thompson,  Barclay,  Mdse. 

bought  Nov.  21;  R.,  1143.25;  Net,  73.11.    Daniel  Paine,  Bridgeport,  Mdse.  bought  Nov.  23;  R.,  118.45; 

Net,  61.17.     J.  H.  Arnold,  Geneva,  Mdse.  bought  Nov.  25;  Net,  1123.18.     (/.) 

Note. — All  goods  are  sold  for  Cash,  Net  Cash,  or  on  "Regular"  Terms.  When  sold  for  cash  no  entry  is  made 
excepting  in  the  Cash  Book,  and  that  at  the  close  of  the  day.  If  thought  best,  such  sales  may  be  described.  See  C. 
B.,  page  152.  Such  cash  receipts  should  agree  with  the  Salesman's  memoranda.  When  sold  for  Net  Ciish,  the  goods 
are  entered  in  the  Sales  Book  with  the  word  "  Net"  after  each  item,  and  the  aggregate  is  posted  to  the  debit  of  the  pur- 
chaser's account  in  the  Leflger.  Mdse.  account  should  be  credited  with  the  daily,  weekly  or  monthly  footing  of 
the  Sales  Book.  When  sold  for  "Net  Cash"  it  is  understood  the  bill  is  to  be  paid  within  30  days.  The  terms  are 
indicated  by  "  Net"  in  the  Sales  Book.  At  the  expiration  of  the  time  the  bill  has  to  run  it  will  be  subject  to  draft  at 
sight.  When  goods  are  sold  on  "  Regular  terras,"  they  are  entered  in  the  Sales  Book  and  posted  precisely  as  when  sold 
for  "Net  Cash,"  excepting  that  the  initial  letter  "R"  is  written  after  each  item.  Bills  sold  on  "Regular"  terms  have 
four  months  to  run,  and  if  paid  within  30  days  are  subject  to  a  discount  of  5  per  cent.  If  allowed  to  run  beyond  the  four 
months  they  are  subject  to  draft  at  sight.  The  terms  on  which  bills  are  sold  should  be  indicated  in  the  Ledger  as  well 
as  in  the  Sales  Book.     See  accounts  given  on  page  153,  for  illustration. 

Sold  Holdridge  &  Gray,  Medina,  1  No.  33  Wal't  Bed,  10.50;  1  No.  33  Wal't  Wood  Top  Dresser, 
17.00;  1  No.  2  Wal't  Towel  Rick,  1.65,  Regular.  2  No.  80  Chairs,  92c.;  12  No.  49^  Chairs,  15.00 
12  No.  67  Ch.,  9.00,  -Net.     {See  Sales  Book,  page  153.) 

John  H.  King,  City,  6  No.  36  Maple  Chairs,  10.80,  Net.   {S.  B.) 

Geo.  C.  Lyon,  Fair  Haven,  3  Best  Side-Board  Beds,  6.30;  3  High  H.  D.  Cots,  7.65;  3  Low 
do.,  7.20;  1  Imp.  Cong.  Ch.,  2.85;  24  No.  72  Light  Ch.,  11.00;  12  No.  73  Dark  Ch.,  5.50;  4  No.  61 
Ch.,  1.92,  Net.     {S.  B.) 

Cash  sales,  J.  Smith,  C.  Suit,  36.00.  Mrs.  Wood,  Pat.  Rocker,  32.00.  W.  Brown,  Parlor  Suit, 
144.     {C.  B.,  see  page  152. ) 

DECEMBER  2,  188- 

Sold  Daniel  Paine,  Bridgeport,  6  No.  25  Ch.,  7.20;  12  No.  72  Ch.  Sing.  Round  Light,  5.25; 
6  No.  57  Ch.,  4.50,  Net.     {S.  B.)     . 

Covert  Bros.,  Oxford,  1  No.  33  Wal't  Wood  Top  Suit,  34.75;  1  Tete  in  Jute,  32.00;  1  Ford 
Rocker,  11.00,  Regular.     1  Arm  Chair,  5.00, 'Net.     {S.  B.) 

J.  H.  Arnold,  Geneva,  2  No.  4  Sof i^  Wood  Beds,  6.50;  2  No.  25^  Ch.,  8.00;  2  No.  24  Ash  and 
Wal't  Beds,  9.00;  18  No.  57  Chairs  in  White  (unfinished),  27.00;  3  No.  33  Asli  and  Wal't  Beds,  18.00; 
4  No.  309  Ch.,  4.00,  Net.     {S.  B.) 

Received  check  from  C.  A.  Graves  for  the  amount  of  his  bill  of  Nov.  3,  1436.85,  less  the  regular 
discount,  5^.     (C.  B.) 

Bought,  for  cash,  3500  ft.  Wal't  Lumber,  @  70.00  per  M.     (C.  B.) 

Cash  Sales:  B.  Jones,  1  Pat.  Rocker,  22.00.  1  Wal't  Hat  Rack,  28.00;  Bunch  of  Cane,  80c.   {C  B.) 


IllEOKETlCAL    AND   PBACl'iCAL   BOOK-Jf RRPtifb  155 

•        DECEMBER  3,  188-. 

Sold  C.  A.  Graves,  Brockport,  2  No.  42  Ash  Beds,  18.00;  2  No.  42  Ash  Dressers,  31.00;  1  No.  42 
Ash  W.  Stand,  5.50,  Regular;  and  2  No.  8:5  Ch.,  3.08,  Net.     (.V.  B.) 

Sold  W.  J.  Thompson,  Barclay,  6  No.  G  Maple  Ch.  in  the  Wliite,  10.80;  4  No.  38  do..  4.80,  Net.  - 

{S.  B.) 

Sold  Warren  &  Francis,  Jamestown,  6  Lounges,  White,  7.50;  4  14  x  24  Glasses,  5.00,  Regular. 
24  No.  57  Ch.,  13.50,  Net.     (;S'.  B.) 

Holdridge  &  Gray,  Medina,  Repairing  Bed  and  Bureau,  8.00;  1  Hair  Soft  Mattress,  4.50,  Regular. 
[S.  B.) 

Cash  sales:  Mrs.  W.  Price,  Ash  Dining  Tahle  and  6  No.  33  Ch.,  2U.00;  1  Wal't  Washstand,  4.00 
(C.  B.) 

DECEMBER  4,  188-. 

Sold  John  H.  King,  City,  24  No.  87  Ch.,  13.00;  36  No.  89  Ch.  Dark,  19.50;  12  No.  89  Light- 
18.00,  Net.     (&  B.) 

Sold  Geo.  C.  Lyon,  Fairhaven,  4  Lounges,  White,  5.00;  1  Nc.  42  Ash  and  Wal't  Suit,  21.25, 
Regular.     2  No.  42  Ch.,  Light,  4.08,  Net.     {S.  B.) 

J.  L.  Brown  paid  his  note  of  8G5.00,  and  interest,  due  to-day. 

E.  S.  Smith  pays  his  bill  of  Nov.  5th,  1371.28,  less  discount,  5  ^  on  the  Regular  jwrtion  of  it. 
[C.  B.) 

Cash  sales:  1  Cong.  Office  Chair,  18.00;  1  Office  Desk,  45.00.     (C.  B.) 

DECEMBER  5,   188-. 

Sold  C.  A.  Graves,  Brockport,  2  No.  48  Oak  Ch.,  2. GO;  24  No.  89  Ch.,  13.00;  1  Wal't  Cor.  Stand, 
3.75,  Net.     (*S'.  B.) 

Sold  Warren  &  Francis,  Jamestown,  1  No.  33  Wal't  Wood  Top  Suit,  36.00;  G  Com.  S.  B..Beds, 
12.00,  Regular.     2  No.  33  Wal't  W.  T.  Dressers.  31.00,  Net.     {S.  B.) 

Sold  W.  J.  Thompson,  Barclay,  1  No.  33  Wal't  W.  T.  Suit,  30. 00;  1  No.  33  Wal't  W.  T.  Wash- 
stand,  7.50,  Regular.     24  No.  87  Ch.,  13.00,  Net.     {S.  B.) 

Cash  Sales:  John  Wagner,  1  W.  T.  Suit,  30.00;  1  Ash  Din.  Table,  18.00.     (C.  B.) 

Bought  Damask,  Jute,  &c.  of  A.  S.  Mann  &  Co.,  by  check,  118.44;  Invoice  filed.     {J.) 

Deposited  2500.00.     {C.  B.) 

DECEMBER  6,   188-. 

Sold  Covert  Bros.,  Oxford,  2  No.  33  Wal't  W.  T.  Suits,  69.50,  Regular.  6  No.  59  Ch.,  13.00, 
N'et.     {S.  B.) 

J.   H.   Arnold,  Geneva,  1  No.  3  Couch  in  Carpet,  9.00;  G  Lounges,  White,  12.90,  Reg.     12  No. 
D.  R.  Ch.,  White,  4.35,  Net.     (.S".  B.) 

Daniel  Paine,  Bridgeport,  2  No.  42  Ash  Beds,  18.00;  2  No.  42  Ash  Dressers,  31.00;  1  No.  42  W. 
Stand,  5.50,  Reg.     6  No.  83  Ch.,  9.00,  Net.     {S.  B.) 

Cash  Sales:  Parlor  Suit,  Wal't,  72.00;  Chamber  riuit,  Wal't,  55.00.     (C.  B.) 
Warren  &  Francis  pay  their  net  bill  of  Nov.  7,  by  check,  21G.40.     (C.  B.) 

The  Foreman  in  the  Cabinet  Shop  has  handed  in  tne  time  of,  and  amount  due  to  tlie  following 
hands:  Nier,  10.50;  Brown,  11.75;  J.  Wilson,  12.80;  D.  Wilson,  6.50;  Meyer,  16.90;  Johnson,  5.00; 
Lyman,  8.30;  Mosier,  14.50.  Thayer,  14.50;  Pease  12.25;  Bartlett,  foreman,  25.00.  From  the  Ware- 
house are  added  Hyatt,  Book-keeper,  30.00;  Mory,  Ass't  Book-keeper,  8.00;  Hacket,  Salesman,  18.00; 
Pomeroy,  Salesman,  20.00.     {Credit  Col.  II.  R.     See  form,  page  152.) 

Note. — The  pupil  will  rule  a  sheet  for  a  Hands  Register  similar  to  the  form  given  on  page  152. 

Paid  in  full  all  whose  names  appear  on  the  Hands  Register,  in  cash.   (Debit  Col.  If.  R.  and  C.  B.) 

Balance  Cash  Book  and  bring  down  balance.  Cash  on  hand,  1552.35.  Post  Journal,  Sales  Book 
and  Cash  Book,  and  take  a  Trial  Balance.  Give  each  account  one-fourth  of  a  page  space.  In  posting 
the  Personal  Accounts,  enter  the  terms  given  in  the  Memoranda.     See  Ledger  form  on  page  153. 


156  THEOEETICAL    AND    PRACTICAL    BOOK-KEEPINO. 

DECEMBER  8,  188-       ■» 

Sold  Geo.  C.  Lyon,  Fair  Haven,  2  No.  33  Wal't  W.  T.  Dressers,  34.00;  2  No.  33  Wal't  W.  T.  W. 
Stands,  15.00,  Reg. 

Holdridge  &  dray,  Medina,  1  No.  35^  Ash  Suit,  2455;  1  No.  50  Shelf  Side  Stand,  3.75,  Reg.  4 
No.  44  Ch.,  3.67;  2  No.  37  Ch.,  1.70;  12  No.  87  Ch.,  6.50,  Net. 

John  H.  King,  City,  2  No.  33  Wal't  W.  T.  Suits,  50.00,  Reg.  10  Spindle  H'd  and  F't  Beds, 
24.00,  Net. 

Sent  check  on  First  National  Bank  to  Bancroft  &  Co.,  Pittsburg,  for  bill  of  Hardware,  318.45. 

Cash  sales:  1  Wal't  M.  T.  Chamber  Suit,  118.00;  1  Wal't  Parlor  Suit  in  Rep,  85.00. 

Bought  new  Planer,  by  check,  875.00. 

DECEMBER  9,   188-. 

Sold  E.  S.  Smith,  North  Wilson,  1  Book  Case,  in  White,  18.00,  Reg.  36  No.  48  Oak  Ch.,  54.00, 
Net. 

Warren  &  Francis,  Jamestown,  24  No.  87  Ch.,  13.00;  24  No.  89  Ch.,  14.00;  12  No.  89  Ch.,  6.75, 
Net. 

W.  J.  Thompson,  Barclay,  1  No.  43  Ash  and  Wal't  Suit,  White,  21.25,  Reg.  2  No.  80  Ch.,  1.08; 
12  No.  98  Ch.,  32.00,  Net. 

Cash  sales:  6  Dining  Ch.,  9.00;  1  Book  Case,  Wal't,  45.00. 

Gave  check  for  6850  ft.  Cherry  Lumber,  @  48.00  per  M. 

Deposited  1500.00. 

S.  H.  Parker  pays  his  note  of  950.00,  with  interest,  in  cash. 

DECEMBER  10,   188-. 

Sold  Covert  Bros.,  Oxford,  6  Lounges,  White,  7.50;  2  No.  1  Couches  in  Carpet,  17.50,  Reg.  6 
No.  25  Ch.,  7.20;  13  No.  57  Ch.,  9.00,  Net. 

C.  A.  Graves,  Brockport,  2  No.  42  Ash  Beds,  18.00;  2  No.  43  Ash  Dressers,  31.00,  Reg.  4  No. 
309  Ch.,  4.00,  Net. 

Daniel  Paine,  Bridgeport,  6  14  X  24  Glasses,  8.35;  3  No.  33  Wal't  W.  T.  Suits,  75.00;  1  Buncli 
Cane,  80c.,  Reg.     10  No.  309  Ch.,  10.00,  Net. 

Cash  Sales:  1  Tete  in  Jute.  16.00;  1  Ford  Rocker,  8.00;  1  Arm  Ch.,  6.00, 

J.  H.  King  pays  his  R.  bill,  184.30,  and  his  Net  bill  of  195.10,  of  Mov.  lOth,  less  discount, 
5  ^  on  the  R.  bill. 

DECEMBER  11,  188-. 

Sold  Holdridge  &  Gray,  Medina,  6  Ash  and  Wal't  Beds.  36.00,  Reg.  18  No.  57.  0.,  in  White, 
15.50;  24  No.  25^  Ch.,  30.00,  Net. 

Geo.  C.  Lyon,  Fair  Haven,  12  No.  4  W.  T.  Cent.  Tables,  42.00,  Reg.     24  No.  59  Ch.,  14.50,  Net. 

John  H.  King,  City,  2  No.  1  Book  Cases,  in  White,  37.00;  2  No.  33  Ash  and  Wal't  Suite,  68.60; 
2  No.  98  Ch.,  5.50,  Net. 

Cash  Sales:  1  W.  T.  Wash  Stand,  4.50;  1  M.  T.  Suit,  56.00;  1  Office  Desk,  34.00;  1  Office  Chair, 
15.00. 

Deposited,  1000.00. 

DECEMBER  12,  188-. 

Sold  E.  S.  Smith,  North  Wilson,  3  No.  42  Ash  and  Wal't  Suits,  63.00;  8  S.  W.  Beds,  34.00,  Reg. 
4  No.  43  hght  Ch.,  4.50;  4  No.  35  dark  Ch.,  4.80,  Net. 

W.  J.  Thompson,  Barclay,  3  No.  33  Wal't  Beds,  21.00;  2  No.  33  W.  T.  Dressers,  34.00,  Reg.  24 
No.  72.  Ch.,  light,  11.00;  12  No.  72  Ch.,  dark,  5.50,  Net. 

Cash  sales:  1  M.  T.  Wal't  Side  Board,  48.00;  1  Wal't  D.  Table,  34.00;  9  D.  Ch.,  13.50. 

DECEMBER  13,  188-. 

Sold  J.  H.  King,  City,  3  M.  T.  Wal't  Side  Bords,  58.00;  3  Wal't  D.  Tables,  38.00,  Reg.  18  No. 
36  Ch.,  34.00,  Net. 

J.  H.  Arnold  Geneva,  2  No.  33  Ash  and  Wal't  Suits,  64.00;  3  No.  4  S.  W.  Beds,  8.00;  8  Com. 
Wash  Stands,  13.00,  Reg.     12  No.  80  Ch.,  13.00,  Net. 

Daniel  Paine,  Bridgeport,  2  No.  35  Ash  Suits,  51.00;  3  Wal't  D.  Tables,  38.00,  Reg.  24  No.  44 
Ch.,  28.00,  Net. 

Sales  for  cash:  1  Couch  in  Carpet,  18.00;  1  Pat.  Kocker,  m.w;  3  Office  Stools,  3.60. 


THEORETICAL    AND    PRAOTIOAL    BOOK-KEEPING.  151 

Covert  Bros,  pay  their  R.  bill  of  Nov.  13,  less  discount,  in  cash. 

Deposit  in  First  National  Bank,  1500.00. 

Bartlett,  foreman,  has  loft  his  Time  Book  in  the  office,  from  which  the  Pay  Roll  will  be  made  up. 
The  hands  have  earned  during  the  week,  as  follows:  Neir,  11.75;  Brown,  11.50;  J.  Wilson,  14.30;  D. 
Wilson,  8.75;  Meyer,  15.50;  Johnson,  6.75;  Lyman,  9.80;  Hosier,  13.20;  Thayer,  16.25;  Pease,  12.50; 
Bartlett,  Foreman,  25.00.  Added  from  the  Office  and  Warehouse:  Hyatt,  Book-keeper,  30.00;  Morey, 
Ass't  Book-keeper,  8.00;  Hackett,  Salesman,  18.00;  Pomeroy,  Salesman,  30.00.  Entered  on  Hands 
Register  and  paid  in  full,  in  cash. 

INVENTORIES,  DECEMBER  13,  188-. 

REAL  EST  ATE— Manufactory,  18000.00;  Warehouse,  34000.00, 42000  00 

M  E RC H AN  D I SE— Manufactured  Stock  and  Raw  Material, 78164  90 

MACHINERY  AND  TOOLS— At  Cost, 9875  00 

OFFICE  FIXTURES— At  Cost, _.. 850  00 

INTEREST— Accumulated  on  D.  M.  W.'s  Note, 

"  "  "  J.  B.  A.'s  Note, 

Balance  the  Cash  Book.  Cash  on  hand,  543.51.  Post,  make  a  Balance  LJheet,  and  clcse  the 
Ledger.     Net  gain,  OUO.oU. 

QUESTIONS  FOR  REVIEW. 

"  What  books  are  required?  Which  are  used  as  principal  books,  and  which  as  auxiliaries?  'Describe 
tne  Sales  Book.  'From  which  book  are  customers  debited  for  purchases  on  account?  *To  what 
account  is  the  footing  of  the  Sales  Book  posted?  "In  what  respect  does  the  Cash  Book  used  in  this 
business  differ  from  the  ordinary  Cash  Book?  "What  do  you  understand  by  "Regular"  bills?  'How 
are  purckasers'  discounted  bills  entered  in  the  Cash  Book?  '  How  are  the  entries  of  merchandise  in 
the  Cash  Book  posted?  '  How  often  should  the  cash  be  proved?  '"  What  does  the  Journal  contain? 
Describe  the  Hands  Register. 


BANKING. 

The  following  arrangement  of  books,  series  of  transactions  and  entries,  are  designed  to  impart  to 
the  learner  a  knowledge  of  the  nature  and  scoi)e  of  the  duties  that  ordinarily  devolve  upon  the  book- 
keeper in  a  bank. 

The  organization  of  a  bank  is  explained  elsewhere  in  this  connection,  but  it  is  not  illustrated,  the 
authors  believing  that  only  those  things  that  will  inevitably  confront  the  pupil  when  he  assumes  a 
position  as  book  keeper  in  a  bank  siiould  be  taught.  More  than  this,  it  is  feared,  will  tend  to  confuse 
the  learner,  and  will  be  of  comparatively  little  value  to  him. 

The  work  embraced  in  this  set  begins  with  the  balances  of  the  accounts  as  exhibited  by  the 
Ledgers  at  the  close  of  business  June  15th,  and  includes  tlie  transactions  developed  by  two  weeks' 
continuous  business.  A  Jjalance  sheet  is  to  be  made,  a  dividend  declared,  and  the  books  are  to  be 
closed  June  29th. 

ORGANIZATION    OF    BANKS. 

There  are  three  ways  in  which  banks  are  established:  First,  by  an  association  of  individuals, 
called  stockholders,  constituting  a  corporation,  whose  powers  to  conduct  a  banking  business  are  con- 
ferred by  the  National  Banking  Act,  and  whose  affairs  are  at  all  times  open  to  the  inspection  of  the 
proper  officer  of  the  United  States  Treasury;  second,  by  an  association  of  individuals,  called  stock- 
holders, also  constituting  a  corporation,  whose  powers  to  conduct  a  banking  business  are  conferred  by 
the  statutes  of  the  State  in  which  the  bank  is  located,  and  whose  affairs  are,  in  a  measure,  under  the 
supervision  of  the  Banking  Department  of  the  State;  and,  third,  by  an  individual  or  partnership,  whose 
affairs  generally  are  controlled  by  no  public  official.  In  some  of  the  States  of  the  Union,  however,  and 
in  the  Dominion  of  Canada,  the  Banking  Department  has  the  supervision,  in  a  measure,  of  every  bank 
conducted  by  an  individual  or  a  partnorshi]).     {For  explanation  of  Corporations,  see  page  202.) 

TO    ORGANIZE   A    NATIONAL   BANK. 

National  Banks  alone  issue  circulating  notes,  and  they  are  required  to  assign  in  trust  to  the 
Treasurer  of  the  United  States,  bonds  of  the  .government,  as  security  for  such  circulation.  Circulating 
notes  are  supplied  by  tlie  government  to  the  amount  of  ninety  jier  cent,  of  the  par  value  of  the  bonds 
so  assigned. 

The  first  step  to  be  taken  in  the  organization  of  a  National  Bank  is  to  open  a  subscription  list. 
After  the  necessary  stock  has  been  subscribed,  the  subscribers  meet,  adopt  articles  of  association  and  a 
name,  select  a  Board  of  Directors,  and  elect  tlie  officers  of  the  bank.  The  books  are  then  opened, 
bonds  of  the  United  States  purchased  and  transferred  to  the  Treasurer  of  the  United  States.  Within  a 
reasonable  time  the  proper  amount  of  currency  is  received  from  the  Treasury  Department,  and  the 
bank  is  jirepared  to  do  a  banking  business,  subject  to  the  restrictions  and  limitations  of  the  National 
Banking  Act. 

TO    ORGANIZE   A   STATE    BANK. 

The  preliminary  steps  in  organizing  a  bank  under  the  banking  law  of  the  State  are  much  the  same 
as  those  to  be  taken  in  organizing  a  National  Bank.  The  subscription  list  is  opened,  articles  of  asso- 
ciation and  a  name  are  adopted,  a  Board  of  Directors  and  officers  are  elected,  just  as  in  the  case  of  a 
National  Bank.  In  addition  to  the  steps  mentioned,  it  is  necessary  that  a  copy  of  the  articles  of 
association  be  filed  with  the  Bank  Suiierintendent  of  the  State,  where  there  is  such  an  officer,  or  with 
the  Comptroller,  and  another  copy  in  the  office  of  the  clerk  of  the  county  ]n  which  the  bank  is  to  be 
located.       "  ■      • 

TO    ORGANIZE   A    PRIVATE    BANK, 

In  opening  a  bank  Ijy  an  individual  no  formality  is  required,  unless  restricted  by  statute;  nor  in 
opening  one  by  a  partnershij),  further  than  is  necessary  in  any  partnership  formed  for  business  pur- 
poses; simply  a  partnership  contract,  signed  by  the  partners,  setting  forth  the  nature  of  the  business 
to  be  transacted,  the  amount  of  capital  each  partner  is  to  furnish,  the  duties  of  each  partner,  the 
duration  of  the  partnership,  and  such  restrictions  upon  the  acts  of  the  officers  as  it  is  thought  wise  to 

impose. 

158 


TIIEOKETICAL    AND    PRACTICAL    BOOK-KEEPING.  159 

DESCRIPTION    OF   THE    300KS. 

A  larger  number  of  books  are  required  in  a  bank  than  in  most  other  kinds  of  business,  yet  tlie 
bookkeeping  is  of  the  most  simple  character.  There  is  so  little  variety  in  the  business  of  a  bank — the 
bookkeeping  of  one  day  is  so  like  that  of  every  other  day — that  the  duties  of  the  bookkeeper  are  little 
more  than  mechanical,  and  are  very  easily  learned.     The  chief  qualifications  are  accuracy  and  rapidity. 

In  banks  doing  a  large  business  the  bookkeeping  is  divided,  sO'  that  a  number  of  men  may  be 
engaged  upon  the  books,  as  explained  elsewhere,  but  the  arrangement  of  books  will  not  differ  materi- 
ally from  that  illustrated. 

What  is  known  among  bankers  as  the  Balance  Ledger  is  exhibited  and  explained  on  pages  199, 
200  and  201.  This  form  of  ledger  possesses  many  advantages,  but  it  is  thought  best  to  require  the 
pupil  to  use  the  ordinary  form  of  Deposit  Ledger,  believing  the  true  sphere  of  instruction  in  this 
connection  to  be  to  teach  book-keeping  as  it  is  practiced  in  the  largest  number  of  Banks,  instead  of 
teaching  innovations  and  radical  departures  from  established  forms  and  customs. 

The  books  used  in  this  set  are  the  Journal,  General  Ledger,  Deposit  Ledger,  New  York  Draft 
Eegister,  Discount  Eegister,  Collection  Register,  Discount  Tickler  and  Collection  Tickler. 

JOURNAL. 

The  Journal  does  not  differ  essentially  from  the  Cash  Book  as  illustrated  in  the  Cash  Method  on 
pages  110  and  111.  The  left-hand  page  is  divided  into  three  cash  columns,  devoted  to  Collection  and 
Exchange,  Deposits,  and  General,  in  the  order  in  which  they  stand.  The  Collection  and  Exchange 
column  contains  all  the  items  to  be  credited  to  Collection  &  Exchange  account,  and  the  footing  of 
the  column  is  carried  into  the  General  column  at  the  close  of  each  day,  and  posted  to  the  credit  of 
Collection  &  Exchange  in  the  General  Ledger.  The  Deposits  column  contains  the  deposits  made  by 
customers  during  the  day,  which  are  posted  to  the  credit  of  the  Depositors'  accounts  in  the  Deposit 
Ledger,  and  the  footing  is  carried  to  the  General  column  at  the  close  of  the  day,  and  posted  to  the 
credit  of  Deposits  account  in  the  General  Ledger.  The  General  column  contains,  in  addition  to  the 
footings  of  the  Collection  &  Exchange  and  Deposits  columns,  all  other  entries  that  are  to  be  posted 
from  this  book  to  the  credit  side  of  the  General  Ledger.  The  footing  of  the  General  column  is  posted 
to  the  debit  of  Cash  in  the  General  Ledger. 

The  right-hand  page  of  the  Journal  is  provided  with  two  money  columns,  designated  Deposits  and 
General.  The  first,  or  Deposits  column,  is  designed  to  contain  checks  drawn  by  our  customers.  In  case 
two  or  more  checks,  drawn  by  one  depositor,  are  paid  during  the  day,  they  are  "short  extended"  on  one 
line,  and  the  aggregate  is  carried  into  the  Deposits  column  at  the  close  of  the  day.  The  footing  of  the 
Doposits  column  is  carried  into  the  General  column,  and  posted  to  the  debit  of  Deposits  account  in  the 
General  Ledger.  Each  depositor  is  debited  in  the  Deposit  Ledger  for  the  aggregate  of  his  checks,  and 
all  items  in  the  General  column  are  posted  to  the  debit  of  the  proper  accounts  in  the  General  Ledger. 
Cash  account  is  credited  with  the  footing  of  the  General  column. 

When  the  business  is  of  such  magnitude  as  to  necessitate  the  employment  of  two  men  ujwn  the 
Journal,  it  is  divided  into  two  books,  one  called  Debit  Journal,  which  is  the  same  as  the  right-hand 
page  in  this  Journal,  and  the  other  called  Credit  Journal,  which  is  the  same  as  the  left-hand  page. 

GENERAL  LEDGER. 
The  General  Ledger  contains  all  of  the  accounts  of  the  business  excepting  those  with  depositors. 
Certificates  of  Deposit  and  Certified  Checks.     Deposit  account  in  the  General  Ledger  represents  the 
accounts  in  the  Deposit  Ledger. 

DEPOSIT  LEDGER. 

This  book  contains  accounts  with  depositors,  Certificates  of  Deposits  and  Certified  Cheeks,  and  those 
only.     Several  forms  of  Deposit  Ledger  are  explained  and  illustrated  on  pages  198,  199,  200  and  201. 

NEW  YORK  DRAFT  REGISTER. 
In  this  book  is  kept,  in  detail,  our  account  with  our  New  York  correspondent.  On  the  left-hand  page 
are  entered  all  remittances  made  to  Chemical  National  Bank  for  our  credit,  giving  the  number  of  the  dnif  t 
or  check,  the  bank  or  person  by  whom  drawn,  the  bank  or  person  on  whom  drawn,  and  the  amount. 
On  the  right-hand  page  are  recorded  all  drafts  drawn  on  Chemical  National  Bank,  giving  the  number, 
the  i)erson,  firm  or  bank  in  whose  favor  made,  the  amount  of  collection  and  exchange,  and  the  face  of 
the  drafts.  This  book  is  balanced  every  day,  and  the  balance  brought  down.  The  aggregate  of  the 
remittances  to  Chemical  National  Bank  for  the  day  is  charged  to  that  bank  on  the  right-hand  side  of 
the  Journal,  and  the  aggregate  of  the  drafts  made  on  Chemical  National  Bank  is  credited  to  that  bank 


160 


THEORETICAL    AND    PRACTICAL    BOOK-KEEPING. 


on  the  left-hand  side  of  the  Journal.  The  footing  of  the  Collection  &  Exchange  column  in  this  book 
is  credited  to  Collection  &  Exchange  account,  on  the  left-hand  side  of  the  Journal.  If  it  is  deemed 
desirable,  this  book  may  also  be  divided  into  two  books,  as  in  the  case  of  the  Journal,  one  being 
devoted  to  remittances  made  to  our  correspondent  in  New  York  city  (or  other  commercial  center), 
and  the  other  to  the  drafts  drawn  by  us  upon  such  correspondent. 

DISCOUNT    REGISTER. 

This  book  is  designed  to  contain  a  complete  record  of  all  paper  discounted  by  the  bank.  The 
Amount,  Discount,  Collection  &  Exchange  and  Proceeds  columns  are  footed  each  day,  and  ruled 
as  illustrated.  {See  Discount  Register,  pages  190  and  191.)  The  footing  of  the  "Amount"  column 
is  posted  direct  to  the  debit  of  Bills  Discounted  in  the  General  Ledger,  and  checked  thus  \/  in 
the  Discount  Eegister;  the  footings  of  the  "Discount"  and  "Collection  &  Exchange"  columns  to 
the  credit  of  Discount  and  Collection  &  Exchange  accounts  in  the  General  Ledger,  and  checked 
in  the  Discount  Eegister;  and  the  footing  of  the  "Proceeds"  column  to  the  credit  of  Deposits 
account  in  the  General  Lodger,  and  checked  in  the  Discount  Eegister.  Each  j)crson  whose  name 
appears  in  the  "For  Whom  Discounted "  column  is  credited  in  the  Deposit  Ledger  for  the  amount 
that  appears  opjjosite  his  name  in  the  Proceeds  column  in  tlic  Discount  Register,  and  checked,  using 
as  a  check  mark  the  page  of  the  depositor's  account  in  the  Deposit  Ledger. 

In  case  the  proceeds  are  paid  in  cash,  the  word  "Cash"  is  written  after  the  party's  name  in  the 
"  For  Whom  Discounted  "  column  and  checked  as  if  it  were  posted,  and  the  party  for  whom  the  paper  was 
discounted  will  be  debited  in  the  Deposit  column  on  the  right-hand  side  of  the  Journal,  and  this  entry 
also  checked.  Discounted  bills  are  entered  first  in  the  Discount  Eegister,  and  from  there  transferred 
to  the  Discount  Tickler,  under  the  date  of  maturity.  When  so  transferred,  a  cheek  mark,  thus  \/ ,  is 
placed  in  the  Tickler  Check  column  in  the  Discount  Eegister  opposite  each  item.  In  case  a  note  is 
dishonored,  "  Protested  "  is  written  opposite  the  record  of  it  in  the  "  Eemarks  "  column  in  the  Discount 
Eegister,  and  such  other  particulars  regarding  the  matter  as  may  be  important. 

DISCOUNT  TICKLER. 
In  this  book  are  recorded  all  the  discounted  bills,  arranged  with  reference  to  their  maturity.     The 
sphere  of  the  Tickler  is  to  insure  the  presentation  of  paper  for  payment  at  the  proper  time. 

COLLECTION  REGISTER. 
This  book  is  designed^  to  contain  a  record  of  all  paper  left  with  us  for  collection,  that  received  by 
us  from  abroad  for  collection,  and  of  all  sight  paper  received  by  us  as  cash.  {See  Collection  Register, 
on  pages  19^  and  195.)  All  time  i^aper  received  for  collection  is  also  entered  in  the  Collection 
Tickler,  and  when  so  entered  is  checked  thus  \/  in  the  "Tickler  and  Cr.  Check"  column  in  the  Col- 
lection Eegister.  All  sight  jjaper  received  from  abroad  is  presented  at  once  for  payment,  and  if  paid  is 
checked  in  the  "  Paid  "  column  in  the  Collection  Eegister.  If  the  paper  is  received  from  one  of  our 
regular  correspondents,  we  place  the  amount  collected  to  the  credit  of  such  bank  in  the  Journal,  and 
check  thus  v'  in  the  "Tickler  and  Cr.  Check"  column  in  the  Collection  Eegister.  The  proceeds  of 
all  paper  received  from  others  than  regular  correspondents  are  remitted  in  draft  on  Chemical  National 
Bank,  and  when  so  remitted  the  paper  is  checked  thus  \/  in  the  "Tickler  and  Cr.  Check"  column  in 
the  Collection  Eegister,  and  the  draft  entered  in  the  New  York  Draft  Eegister.  All  checks  and  sight 
drafts  payable  abroad,  received  as  cash,  are  entered  in  this  book,  and  charged  in  the  Journal  to  the 
accounts  of  the  banks  to  which  they  are  sent  for  collection.  When  so  charged  they  are  checked  thus  y/ 
in  the  "  T.  and  Cr.  Check  "  column. 

COLLECTION    TICKLER, 

This  book  contains  a  record  of  all  time  paper  received  for  collection,  such  paper  being  arranged 
with  reference  to  its  date  of  maturity.  The  utmost  care  should  be  exercised  in  entering  paper  in  the 
Ticklers,  as  grave  consequences  may  follow  erroneous  entries  in  these  books. 

INDIVIDUAL   LIABILITIES. 
This  book  is  designed  to  show,  in  convenient  form,  the  amount  of  discounted  paper  carried  by  the 
bank  for  each  customer.     It  gives  the  date,  date  of  maturity,  amount  of  each  note,  the  parties,  collat- 
eral security  if  any,  and  the  date  when  paid.     It  is  not  regarded  necessary  for  the  pupil  to  use  this 
book  in  performing  the  following  work. 

STOCK    LEDGER. 
This  book  contains  an  account  with  every  stockholder,  in  which  he  is  credited  with  the  amount  of 
stock  paid  for,  and  debited  with  all  stock  transferred  to  other  parties.     This  book  is  not  used  in  this 
connection,  but  the  form  of  a  Stock  Ledger  is  illustrated  on  pages  303  and  304. 


THEORETICAL    AND    PRACTICAL    BOOKKEEPING. 


161 


RESOURCES  AND  LIABILITIES 

OF   THE 

SECOND    NATIONAL    BANK, 


Tlie  General  Ledger  of  the  Second  National  Bank  exhibits  the  following  balances  of  accounts  at 
the  close  of  business,  Saturday,  June  15,  18 — . 


DEBIT   BALANCES. 


CREDIT   BALANCES. 


Cash,  2 

United  States  Bonds,  3 

Keal  Estate,  5 

Furniture  and  Fixtures,  6 

Expense,  7 

National  Park  Bank,  New  York, 

(approved  i-escrve  agent),  8 

Chemical  National  Bank,  NewYork,  13 
Bills  Discounted,  lo 

Wayne  Co.  National  Bank,  Lyons,  la 
Geo. K.  Warren  &  Co., Bankers, Bath,  u 
First  National  Bank,  Rockford,  is 
Norwich  National  Bank,  Norwich,  23 
Farmers'  Bank,  Canton,  i" 

Third  National  Bank,  Newport,        is 
Exchange  National  Bank,  Bristol,    19 
Traders'  National  Bank,  Kingston,  20 
Eedemption  Fund  with  XJ.  S.  Treas- 
urer (5  ^  on  circulation),  22 


62348 

92 

100000 

24500 

2500 

2683 

19 

26523 

85 

96275 

13 

234873 

54 

3846 

11 

1786 

51 

2870 

97 

814 

02 

386 

07 

1287 

19 

3876 

24 

883 

77 

4500 

560955 

51 

Capital  Stock, 

Circulation, 

Deposits, 

Discount, 

Collection  and  Exchange, 

Surplus  Fund, 

Undivided  Profits, 


200000 

90000 

233783 

6483 

2219 

31750 

5718 


57 
71 
18 
63 
42 


569955    51 


G.  L. 

Note. — Open  accounts  in  the  General  Ledger  with  the  above  balances,  as  you  would  if  you  were  opening  a  new 
Ledger  in  any  other  bu.siness,  and  open  them  in  the  oi-der  indicated  by  the  number  placed  before  each  amount,  giving 
each  account  oue-half  of  a  page. 

Tlie  following  are  the  balances  of  depositors'  accounts,  as  shown  by  the  Deposit  Ledger.  It  will 
be  observed  that  the  aggregate  of  these  credits  is  the  same  as  the  amount  credited  to  Dejjosits  account 
in  the  General  Ledger. 

Note. — Open  an  account  with  each  depositor  in  the  Deposit  Ledger,  and  credit  him  with  the  amount  opposite  his 
name.     Give  each  account  one-half  of  a  page.     The  order  in  which  they  appear  is  unimportant. 


W.  F.  Jameson, 

17486 

18 

Forward, 

146662 

42 

Chas.  J.  Burke, 

32173 

11 

Wm.  Ravniond, 

4103 

29 

R.  L.  Mason, 

18452 

09 

Maxwell  Day, 

8946 

25 

D.  J.  Slecum, 

2483 

74 

Samuel  Wilder, 

11216 

07 

Stillman  &  Moore, 

16293 

81 

L.  J.  Farnsworth, 

6388 

28 

Jas.  Angle, 

9817 

04 

Bingham,  Field  &  Ward, 

16343 

86 

Thomas  H.  Wilson, 

12117 

93 

Benj.  Thomas  &  Son, 

13963 

26 

R;iv  Brothers, 

11483 

54 

Lord  &  Bennett, 

11861 

98 

Meyer  &  KaufEman, 

9411 

31 

T.  J.  &  W.  E.  Upton, 

14298 

16 

Johnson  Manufacturing  Company, 

16943 

67 

Forward, 

146662 

42 

233783 

57 

D.  L. 

The  following  discounted  paper,  aggregating  the  amount  debited  to  Bills  Discounted  account  in 
the  General  Ledger,  is  in  possession  of  the  bank  at  this  date,  as  shown  by  the  Discount  Tickler.  i^See 
form  of  Discount  Tickler,  on  page  196.) 

Note. — This  discounted  paper  should  be  entered  in  the  Discount  Tickler,  each  item  under  its  date  of  maturity. 
Since  there  is  no  entry  or  check  mark  to  be  made  in  the  Discount  Register  at  the  maturity  of  paper,  it  is  not  necessary 
to  enter  paper  on  hand  at  this  date  in  that  book.  All  paper  discounted  on  this  date,  and  hereafter,  must  be  entered  in 
the  Discount  Register  as  well  as  the  Discount  Tickler  when  received.  Write  the  dates  in  order  in  the  Discount  and 
Collection  Ticklers,  omitting  Sundays  and  holidays.  All  paper  maturing  on  either  of  the  days  mentioned  should  be 
entered  under  the  previous  date. 


162 


THEORETICAL    AND    PRACTICAL    BOOK-KEEPING. 


No.   182.     Note  of  H.  Whitaker,  at  30  days  from  May  15th,  indorsed  by  D.  J.  Slocum,  payaole  at 
Second  National  Bank,  Lyons,  for  1500.00.     Sent  to  Wayne  County  National. 

No.  483.     Note  of  H.  C.  Decker,  at  90  days  from  March  16th,  indorsed  by  Wm.  Kaymond,  payable 
at  Exchange  Bank,  City,  for  8750.00. 

No.  484.     Note  of  W.  S.  Cliapin,  indorsed  by  W.  W.  Wheeler,  at  2  months  from  April  14th,  pay- 
able at  Woodruff's  Bank,  Livonia,  for  500.00.     Sent  to  Woodruff's. 

No.  485.     Note  of  Maxwell  Day,  indorsed  by  Burt,  Brace  &  Co.,  at  1  month  from  May  15th,  pay- 
able at  our  bank,  for  10000.00. 

No.  486.     Note  of  A.  0.  Bunnell,  indorsed  by  Joseph  Cone,  at  3  months  from  Marcli  15th,  payable 
at  Exchange  Bank,  Dansville,  for  10500.00.     Sent  to  Exchange. 

No.  487.     Note  of  A.  M.  Hastings,  indorsed  by  Samuel  Wilder,  at  C  months  from  December  16th, 
payable  at  Union  Bank,  City,  for  5000. 

No.  488.     Note  of  W.  T.  Tinsley,  indorsed  by  J.  A.  Munson  and  Meyer  &  Kauffman,  at  30  days 
from  May  17th,  payable  at  Wayne  Co.  National  Bank,  Lyons,  for  7500.00.     Sent  to  Wayne  Co.  Nat'l. 

No.  489.     Note  of  H.  Bancroft,  indorsed  by  Samuel  Wilder,  at  3  months  from  March  ]  6th,  payable 
at  our  bank,  for  9000.00. 

No.  490.     Note  of  J.  Wilson  &  Co.,  indorsed  by  Lord  &  Bennett,  at  60  days  from  April  17th,  pay- 
able at  our  bank,  for  15000.00. 

No,  49L     Note  of  P.  J.  Smith,  indorsed  by  Eay  Bros.,  at  4  months  from  February  17th,  payable 
at  Third  National  Bank,  Newport,  for  7200.00.     Sent  to  Third  National. 

No.  492.     Note  of  Johnson  Mfg.  Co.,  indorsed  by  Freeman  Clarke,  at  90  days  from  March  19th, 
payable  at  our  bank,  for  3000.00. 

No.  493.     Note  of  E.  L.  Mason,  indorsed  by  P.  J.  Moore,  at  1  month  from  May  18th,  payable  at 
our  bank,  for  5000.00. 

No.  494.     Note  of  D.  W.  Smith  &  Co.,  indorsed  by  Jas.  Angle,  at  6  months  from  December  18th, 
payable  at  Union  Bank,  City,  for  2876.90. 

No.  495.     Note  of  L.  J,  Pratt  &  Co.,  indorsed  by  Jas.  Angle,  at  30  days  from  May  19th,  payable 
at  Exchange  Bank,  City,  for  1500.00. 

No.  496.     Note  of  Bingham,  Field  &  Ward,  indorsed  by  0.  D.  Cox,  at  90  days  from  March  21st, 
payable  at  our  bank,  for  2150.00. 

No.  497.     Accepted  draft  of  P.  Wise  &  Son,  indorsed  by  Bingham,  Field  &  Ward,  at  10  days  from 
June  9th,  payable  at  Second  National  Bank,  Palmyra,  for  1800.00.     Sent  to  Second  National. 

No.  498.     Note  of  Creed  &  Wilson,  indorsed  by  Ray  Bros.,  at  3  months  from  March  19th,  payable 
at  Union  Bank,  City,  for  2500.00. 

■  No.  499.     Note  of  Brown  &  Wood,  indorsed  by  Benj.  Thomas  &  Son,  at  60  days  from  April  20th, 
payable  at  Third  National  Bank,  Newport,  for  1750.00.     Sent  to  Third  National. 

No.  500.     Note  of  W.  F.  Jameson,  indorsed  by  James  Brackett,  at  30  days  from  May  22d,  payable 
at  our  bank,  for  12000.00. 

No.  501.     Note  of  Robert  Vaughan,  indorsed  by  Lord  &  Bennett,  at  2  months  from  April  21st, 
payable  at  Union  Bank,  City,  for  2540.18. 

No.  502.     Note  of  H.  W.  Glass,  indorsed  by  Wm.  Raymond,  at  2  months  from  April  22d,  payable 
at  Brown  &  Co.'s  Bank,  Canton,  for  785.00.     Sent  to  Farmers'. 

No.  503.     Note  of  L.  W.  Davis,  indorsed  by  Thos.  H.  Wilson,  at  4  months  from  February  22d, 
payable  at  Exchange  Bank,  City,  for  3250.00. 

No.  504.     Note  of  Meyer  &  Kauffman,  indorsed  by  Nelson  James,  at  2  months  from  April  23d, 
payable  at  our  bank,  for  4500.00. 

No.  505.     Note  of  Knajip  &  Peck,  favor  of  Meyer  &  Kauffman,  at  60  days  from  April  24th,  payable 
at  First  National  Bank,  Auburn,  for  3879.60.     Sent  to  First  National. 

No.  506.     Note  of   L.  W.  Brigham,  indorsed  by  Samuel  Wilder,  at  3  months  from  March  24th, 
payable  at  Farmers'  Bank,  Canton,  for  1285.42.     Sent  to  Farmers'. 

No.  507.     Note  of  Maxwell  Day,  indorsed  by  Burt,  Brace  &  Co.,  at  1  month  from  May  24th,  pay- 
able at  our  bank,  for  5000.00. 

No.   508.     Note  of  Bingham,  Field  &  Ward,  indorsed  by  C.  D.  Cox,  at  30  days  from  May  25th, 
payable  at  our  bank,  for  3750.00. 

No.   509.     Note  of  K.  T.  Snyder,  indorsed  by  Maxwell  Day,  at  4  months  from  February  25th, 
payable  at  Union  Bank,  City,  for  2463.21. 

No.  510.     Note  of  Amos  Tracy,  indorsed  by  Meyer  &  Kauffman,  at  1  month  from  May  25th,  pay- 
able at  Geo.  K.  Warren  &  Co.'s  Bank,  Bath,  for  7340.00.     Sent  to  Geo.  K.  Warren  &  Co.'s. 


THEORETICAL    AND    PRACTICAL    BOOK-KEEPING.  163 

No.  511.  Note  of  Yates  &  Bell,  indorsed  by  Kay  Brothers,  at  90  days  from  March  28th,  payable 
at  Exchange  Bank,  City,  for  8500.00. 

No.  513.  Note  of  Weaver  &  Co.,  indorsed  by  T.  J.  &  W.  E.  Upton,  at  3  months  from  March 
2Cth,  payable  at  Ninth  National  Bank,  New  York,  for  6250.00,     Sent  to  Chemical. 

No.  513.  Note  of  Page  &  Co.,  indorsed  by  Thos.  11.  Wilson,  at  2  months  from  April  2Ctli,  payable 
at  Union  Bank,  City,  for  7300.00. 

No.  514.  Note  of  A.  W.  Dunlap  &  Bro.,  indorsed  by  Samuel  Wilder,  at  60  days  from  April  28th, 
payable  at  Norwich  National  Bank,  for  6833.75.     Sent  to  Norwich  National. 

No.  515.  Note  of  Stillman  &  JMoore,  indorsed  by  H.  Sibley,  at  1  month  from  May  28tli,  jjayable 
at  our  bank,  for  1500.00. 

No.  516.  -Note  of  Cox  &  Walker,  indorsed  by  Mej'or  &  KaufFman,  at  2  months  from  April  20th, 
payable  at  Farmers'  Bank,  Canton,  for  3850.00.     Sent  to  Farmers'. 

No.  517.  Note  of  Curr  &  Carson,  indorsed  by  Meyer  &  KaiiSman,  at  10  days  from  June  21st, 
payable  at  Exchange  Bank,  Bristol,  for  6785.35.     Sent  to  Exchange  National. 

No.  518.  Note  of  Carroll  &  Ward,  indorsed  by  W.  F.  Jameson,  at  30  days  from  June  1st,  payable 
at  Traders'  National  Bank,  Kingston,  for  8342.11.     Sent  to  Traders'  National. 

No.  519.  Note  of  B.  J.  Clark  &  Son,  indorsed  by  Johnson  Mfg.  Co.,  at  60  days  from  May  3d, 
payable  at  First  Nati<mal  Bank,  Rockford,  for  783.20.     Sent  to  First  National. 

No.  520.  Note  of  R.  L.  Mason,  indorsed  l)y  A.  S.  Hamilton,  at  2  months  from  May  6th,  payable 
at  Geo.  K.  Warren  &  Co.'s  Bank,  Bath,  for  600o".00.     Sent  to  Geo.  K.  Warren  &  Co.'s. 

No.  521.  Note  of  Clinton  Rogers  &  Co.,  indorsed  by  Thos.  H.  Wilson,  at  3  months  from  Ai)ril 
7th,  payable  at  Union  Bank,  City,  for  4283.50. 

No.  522.  Note  of  De  Witt  Clarke,  indorsed  by  L.  J.  Famsworth,  at  CO  days  from  May  12th,  pay- 
able at  Exchange  Bank,  City,  for  3592. 18. 

No.  523.  Note  of  T.  W.  Whittlesey,  indorsed  by  Lord  &  Bennett,  at  2  months  from  May  12th, 
payable  at  Farmers'  Bank,  Canton,  for  6583.14.     Sent  to  Farmers'. 

No.  524.  Accepted  draft  of  J.  B.  Meech,  indorsed  by  D.  J.  Slocum,  at  60  days  from  May  14th, 
payable  at  Union  Bank,  City,  for  6380.00. 

No.  525.  Note  of  Meyer  &  KaufEman,  indorsed  by  Nelson  James,  at  3  montlis  from  April  15th, 
payable  at  our  bank,  for  5000.00. 

No.  526.  Note  of  R.  II.  Atwood,  indoi'sed  by  Chas.  J.  Burke,  at  6  months  from  January  16th, 
payable  at  Exchange  Bank,  City,  for  4350.00. 

No.  527.  Note  of  Maxwell  Day,  indorsed  by  Burt,  Brace  &  Co.,  at  3  months  from  April  17th, 
l)ayable  at  our  bank,  for  6220.00. 

The  following  paper  is  in  possession  of  tlio  bank  at  this  date  for  collection  tor  other  j)arties,  as 
shown  by  the  Collection  Tickler.     {See  form  of  Collection  Tickler,  on  page  197.) 

Note. — All  of  this  paper  must  be  entered  in  the  Collection  Tickler,  each  item  under  its  date  of  maturity.  Since 
there  is  no  entry  to  he  made  in  tlie  C!ollection  Register  when  tlie  paper  matures,  excepting  to  check  sight  paper  wlien  it 
is  paid  and  credited,  this  paper  need  not  be  entered  in  that  book. 

No.  819.  For  R;  L.  Mason,  accepted  draft  at  10  days  from  June  4th,  on  J.  11.  Wing,  Lyons,  for 
584.75.     Sent  to  Wayne  County  National. 

No.  820.  For  Stillman  &  Moore,  accepted  draft  at  3  dajs  from  June  11th,  on  Porter  Farley,  Can- 
ton, for  1250.00.     Sent  to  Farmers'. 

No.  821.  For  Thos.  II.  Wilson,  John  B.  Sage's  note,  at  30  days  from  May  16th,  payable  at  Geo. 
K.  Warren  &  Co.'s  Bank,  Bath,  for  817.00,  with  interest.     Sent  to  Geo.  K.  Warren  &  Co.'s. 

Note. — Write  Interest  over  the  amount  in  C.  T. 

No.  822.  For  Meyer  &  Kauflman,  Henry  A.  Strong's  note,  at  2  months  from  April  15th,  payable 
at  Union  Bank,  City,  for  215.00. 

No.  823.  For  Wm.  Raymond,  accepted  draft  on  W.  D.  McGuire,  at  10  days  from  June  5th,  i)ay- 
able  at  Norwich,  for  368.90.     Sent  to  Norwich  National. 

No.  824.  For  Samuel  Wilder,  accepted  draft  on  E.  F.  Woodbury,  Newport,  at  60  days  from  April 
17th,  for  03.92.     Sent  to  Third  National. 

No.  825.  For  Bingham,  F.  &  W.,  J.  E.  Booth's  note,  at  1  month  from  May  16th  iiayable  at 
Canton  Savings  Bank,  for  216.25.     Sent  to  Farmers'. 


164  THEORETICAL    AND   PRACTICAL    BOOK-KEEPING. 

No.  826.     For  Eay  Brothers,  P.  Ford's  note  at  30  days  from  May  17th,  jiayablc  at  Eockford 
County  Bank,  with  interest,  for  1483.50.     Sent  to  First  National. 
Note. — Write  Interest  over  the  amount  in  C.  T. 

No.  837.     For  Lord  &  Bennett,  J.  M.  Harrison  s  note,  at  3  months  from  Marcli  17th,  payable  in 
Bristol,  for  1500.00.     Sent  to  Exchange  National. 

No.  828.     For  Chas.  J.  Burke,  accepted  draft  on  R.  S.  Kenyon,  at  2  montlis  from  April  17th. 
payable  in  New  York,  for  957.65.     Sent  to  Chemical. 

No.  829.     For  D.  J.  Slocum,  A.  L.  ]\Iabbett's  note,  at  3  months  from  March   17th    -)ayable  at 
Lyons,  for  88.40.     Sent  to  Wayne  County  National. 

No.  830.     For  Jas.  Angle,  J.  L.  Townsend's  note,  at  60  days  from  Ajjril  18th,  i)ayable  at  Bath, 
for  396.15.     Sent  to  Geo.  K.  Warren  &  Co. 's. 

No.  831.     For  Johnson  Manufacturing  Co.,  accepted  draft  ou  F.  AV.  Clark,  Norwich,  at  3  days 
from  June  15th,  for  911.13.     Sent  to  Norwich  National. 

No.  832.     For  Maxwell  Daj^  Ward  Kelly's  note,  at  6  months  from  December  18th,  payable  at 
Union  Bank,  City,  for  1350.00. 

No.   833.     For  L.  J.  Farnsworth,  accepted  draft  on  Arthur  Eanncy,  at  1  month  from  May  19th, 
payable  in  Canton,  for  1215.00.     Sent  to  Farmers'. 

No.  834.     For  S.  H.  Lowe,  Jacob  Hoekstra's  note,  at  6  months  from  December  19th,  payable  at 
Exchange  Bank,  City,  for  918.30. 

No.  835.     For  W.  F.  Jameson,  accepted  draft  on  A.  M.  Hastings,  Yonkers,  at  10  days  from  June 
9th,  for  856.62.     Sent  to  Chemical. 

No.  836.     For  R.  L.  Mason,  L.  S.  Fulton's  note,  at  2  months  from  April  20th,  payable  in  Lyons, 
for  126. 90.     Sent  to  Wayne  County  National. 

No.  837.     For  Stillman  &  Moore,  Chas.  F.  Ham's  note,  at  3  mouths  from  March  21st,  payable  at 
Union  Bank,  City,  for  318.20. 

No.  838.     For  Thos.  H.  Wilson,  R.  L.  Wayte's  note,  at  30  days  from  May  24th,  payable  in  Rock- 
ford,  for  792.53.     Sent  to  First  National 

No.  839.     For  Meyer  &  Kauffman,  accepted  draft  on  Jas.  Graham,  Norwich,  at  30  days  from  May 
26th,  for  1239.16.     Sent  to  Norwich  National. 

No.  840.     For  Wm.  Raymond,  Geo.  W.  Gordon's  note,  at  2  months  from  April  27th,  payable  at 
Union  Bank,  City,  for  189.38. 

No.  841.     For  Samuel  Wilder,  E.  M.  Sjjaulding's  note,  at  60  days  from  April  28th,  payable  at 
Exchange  Bank,  City,  for  573.20. 

No.  842.     For  Bingham,  Field  &  Ward,  Jvinius  Judson's  note,  at  5  montlis  from  January  28th, 
payable  in  Kingston,  for  375.00.     Sent  to  Traders'  National. 

No.  843.     For  Chas.  J.   Burke,  Raleigh  Farrar's  note,  at  2  months  from  April  30tli,  jjayable  in 
Jersey  City,  for  432.57.     Sent  to  First  National. 

No.  844.     For  D.  J.  Slocum,  accepted  draft  at  10  days  from  June  21st,  on  Geo.   II.   Lajiham, 
Lyons,  for  87.50.     Sent  to  Wayne  County  National.  "* 

No.   845.     For  Jas.  Angle,  F.  W.  Warren's  note,  at  3  months  from  Aj)ril  1st,  payable  in  Rockford, 
for  717.90.     Sent  to  First  National. 

No.  846.     For  Ray  Brothers,  J.  M.  Cook's  note,  at  CO  days  from  May  5th,  payable  at  Union  Bank, 
City,  for  1123.80. 

No.  847.     For  Johnson  Mfg.  Co.,  P.  J.  Reynolds'  note,  at  90  days  from  April  Cth,  payable  in 
Norwich,  for  293.60.     Sent  to  Norwich  National. 

No.  848.     For  Maxwell  Day,  Carlton  Bowen's  note,  at  3  months  from  April  7th,  payable  in  Can- 
ton, for  783.19.     Sent  to  Farmers'. 

No.  849.     For  L.  J.  Farnsworth,  A.   C.  Allen's  note,  at  2  months  from  May  8tli,  2iayable  at 
Exchange  Bank,  City,  for  318.00. 

No.  850.     For  Benj.  Thomas  &  Son,  note  of  Geo.  W.  Eastman,  at  one  month  from  Juno  13th, 
payable  in  Bristol,  for  500.00.     Sent  to  Exchange  National. 

No.  851.     For  D.  D.  T.  Moore,  note  of  Robert  Boyd,  at  2  months  from  May  13th,  i)ayablo  at  Union 
Bank,  City,  for  375.00. 

No.    852.    For  R.  P.  Rice,  note  of  J.  B.  Winnans,  at  3  months  from  April  14th,  payaljlc  at  First 
National  Bank,  Bath,  for  118.90.     Sent  to  Geo.  K.  Warren  &  Co.'s. 

No.    853.    For  W.  F.  Jameson,  note  of  K.  P.  Shedd,  at  30  days  from  Juno  15th,  payable  at  Nor- 
wich National  Bank,  for  615.00.     Sent  to  Norwich  National. 


THEORETICAL    AND   PRACTICAL   BOOKKEEPING.  165 

MEMORANDA   OF    BUSINESS. 

JUNE   17,  18—. 
Discount  No.  483,  note  of  H.  C.  Decker  of  8750.00,  has  been  paid. 
Note.— Mark  this  Paid  &  Entered,  or  P.  &  E.,  in  tlie  Discount  Tickler,  and  credit  Bills  Discounted  in  the  Journal. 

Keceived  the  following  paper  for  collection : 

No.  854.  For  E.  L.  Mason,  sight  draft  on  L.  W.  Wooden,  Nyack,  for  432.50.  Sent  it  to  Chem- 
ical Bank.     ( C.  R.    See  note  below. ) 

No.  855.  For  Stillman  &  Moore,  note  of  L.  F.  Chappell,  at  3  months  from  April  1st,  for  1250.00, 
payable  at  Second  National  Bank  of  Lyons.    Sentto  Wayne  Co.  National  Bank,  Lyons.    (C.R.and  C.  T.) 

No.  856.  For  G.  H.  Perkins,  sight  draft  on  W.  B.  Murdock,  Canton,  for  926.18.  Sent  to  Farmers 
Bank,  Canton.     {C.  R.) 

No.  857.  For  Jas.  Angle,  note  of  David  A.  Welles,  at  30  days  from  May  18th,  for  750.00,  with 
interest,  payable  at  Union  Bank,  City.     ( C.  R.  and  C.  T. ) 

No.  858.  For  T.  J.  &  W.  E.  Upton,  sight  draft  on  Daniel  Boody,  Hoboken,  for  119.75.  Sent  to 
Chemical  Bank.     {C.  R.) 

No.  859.  For  Samuel  Wilder,  accepted  draft  on  Wm.  Haynes,  Norwich,  at  10  days  from  June 
13th,  for  1842.11.     Sent  to  Norwich  National  Bank.     (C.  R.  and  C.  T.) 

No.  860.  For  Wm.  Raymond,  sight  draft  on  Peter  Bradley,  Eockford,  for  143.90.  Sent  to  First 
National  Bank,  Eockford.     (C.  R.) 

Note. — All  sight  paper,  whether  received  on  deposit  or  only  for  collection,  should  be  entered  in  the  Collection 
Register,  and  all  time  paper  should  also  be  entered  in  the  Collection  Tickler,  under  date  of  maturity. 

Discounted  the  following  i)aper: 

No.  528.  For  Chas.  J.  Burke,  note  of  J.  D.  Winslow,  at  30  days  from  this  date,  payable  at 
Exchange  Bank,  City,  for  858. 90.  Proceeds  credited.  {Discount  Registei:  D.  T.  See  form  on  pages 
190  and  191.) 

No.  529.  For  D.  J.  Slocum,  note  of  H.  Whitaker,  at  1  month  from  June  15th,  payable  at  First 
National  Bank,  Lyons,  for  1250.00.  Proceeds  credited  and  note  sent  to  Wayne  County  National  Bank 
for  collection.     Discount,  6.46;  Collection,  1.00;  Exchange,  1.56.     {D.  R.,  D.  T.) 

Note. — A  charge  is  made  for  Exchange  as  well  as  Collection  on  all  discoimted  paper  payable  abroad.  The  proceeds 
of  each  note  must  be  remitted  to  us,  if  the  note  was  collected  by  a  bank  not  a  regular  correspondent,  and  the  cost  of 
Exchange  will  be  deducted;  and  a  like  charge  for  Exchange  would  be  made  by  our  correspondents  were  it  not  for  the 
reciprocal  arrangement  with  them  mentioned  on  page  167.     Hence  our  charge  for  Exchange. 

No.  530.  For  Samuel  Wilder,  note  of  A.  M.  Hastings,  at  10  days  from  this  date,  payable  at  L^nion 
Bank,  City,  for  3875.00.     Proceeds  credited.     {D.  R.,  D.  T.) 

No.  531.  For  Johnson  Mfg.  Co.,  their  note  at  30  days  from  this  date,  indorsed  by  Freeman 
Clarke,  payable  at  our  bank,  for  5000.00.     Proceeds  credited.     [D.  R.,  D.  T.) 

The  following  drafts  on  New  York  were  received  among  the  deposits,  and  have  been  sent  to  Chemi- 
cal Bank,  New  York,  for  our  credit:  No.  234,  First  National  of  Dayton,  on  Shoe  &  Leather,  2875.00; 
No.  1851,  Commercial  of  Corning,  on  Metropolitan,  542.75;  No.  753,  City  Bank  of  Holley,  on  Broad- 
way, 37.20;  No.  115,  Seward's  of  Auburn,  on  Chemical,  1123.14;  No.  1321,  Exchange  of  Geneva,  on 
Third  National,  2475.00;  No.  4,  Steele  &  Avery,  City,  on  D.  Slote  &  Co.,  375.00.     {N.  Y.  D.  R.) 

Note. — See  form  of  New  York  Draft  Register  on  page  193,  and  description  of  it  on  page  1.59. 

Drew  the  following  drafts  on  Chemical  Bank:  No.  585,  favor  Lord  &  Bennett,  325.10;  Exch.,  50c. 
No.  586,  favor  Samuel  Wilder,  1200.00;  Exch.,  1.50.  No.  587,  favor  G.  W.  Cook,  56.15;  Exch.,  15c. 
No.  588,  favor  Meyer  &  KaufEman,  2500.00;  Exch.,  3.13.  No.  589,  favor  Stillman  &  Moore,  300.00; 
Exch.,  50c.  No.  590,  favor  Thos.  H.  Wilson,  10000.00;  Exch.,  12.50.  No.  591,  favor  W.  F.  Jame- 
son, 2000.00;  Exch.,  2.50.     {N.  Y.  D.  R.     See  form  on  page  193.) 

Eeceived  the  following  deposits:  Lord  &  Bennett,  1285.50;  Samuel  Wilder,  976.00;  Johnson 
Manufacturing  Co.,  2875.00;   Stillman  &  Moore,  1872.25;    Chas.  J.  Burke,  5460.00;  James  Angle, 


166  '         THEORETICAL    AND    PKACTICAL   BOOK-KEEPING. 

375.00;  W.  F.  Jameson,  926.14;   D.  J.  Slocum,  432.12;   Ray  Bros.,  856.11;   Wm.  Raymond,  1756.23; 
L.  J.  Parnsworth,  493.92;  Benj.  Thomas  &  Son,  1250.00;  T.  J.  &  W.  E.  Upton,  2115.00.     (J.) 

Note. — Enter  the  above  deposits  on  the  left-hand  side  of  the  Journal,  and  the  following  checks  on  the  right-hand 
side,  as  they  would  be  in  the  Cash  Method.  Enter  all  deposits  and  checks  in  the  Journal  short  extended,  and  make  the 
final  extensions  at  the  close  of  business  for  the  day.  See  form  of  Journal  on  pages  184  and  185,  and  the  explanation  of 
the  manner  of  tising  the  special  columns  on  page  159. 

Paid  the  following  checks:  Bingham,  Pield  &  Ward,  375.00,  926.50,  1000.00;  Lord  &  Bennett, 
2118.00,  325. GO,  92.15;  Samuel  Wilder,  2025.00,  37.50,  325.00,  150.00;  Wm.  Raymond,  200.00,  480.00, 
3115.00;  Meyer  &  Kauffrtian,  4275.00,  85.00;  Thos.  H.  Wilson,  10000.00;  Stillman  &  Moore,  2500.00; 
187.50;  300.00;  R.  L.  Mason,  3250.00,  132.00,  247.18;  W.  P.  Jameson,  2000.00,  342.25,  1175.00.    {J.) 

Collection  and  Exchange,  from  Teller's  Memorandum,  7.25.     (/.) 

Note. — The  items  of  Collection  and  Exchange  on  sight  drafts  and  foreign  checks  received  on  deposit  are  entered  in 
the  Teller's  Memorandum  at  the  time  the  deposits  are  made,  and  are  either  paid  in  cash  by  the  depositors  or  deducted 
from  the  deposit  tickets.  Collection  and  Exchange  is  credited  in  the  Journal  at  the  end  of  the  day  for  the  sum  of  such 
items 

The  pupil  will  now  balance  the  New  York  Draft  Register,  and  carry  the  aggregate  of  the  drafts 
drawn  on  Chemical  National  Bank  to  the  credit  of  that  bank  on  the  left-hand  side  of  the  Journal,  the 
footing  of  the  Collection  &  Exchange  column  to  the  Collection  &  Exchange  column  on  the  left-hand 
side  of  the  Journal,  and  the  aggregate  of  remittances  to  Chemical  National  Bank  to  the  debit  of  that 
bank  on  the  right-liand  side  of  the  Journal.  Add  and  rule  the  columns  in  the  Discount  Register,  and 
post  the  footing  of  the  column  containing  the  amount  of  jiaper  discounted  direct  to  tlie  debit  of  Bills 
Discounted  in  the  General  Ledger,  the  footings  of  the  Discount  and  Collection  &  Exchange  columns  to 
the  credit  of  those  accounts  m  the  General  Ledger,  and  tlie  footing  of  the  Proceeds  column  to  the 
credit  of  Deposits  in  the  General  Ledger.  The  items  in  the  Proceeds  column  should  be  credited  to  the 
persons  for  whom  discounted,  in  the  Dejiosit  Ledger.  Check  each  posting  thus  y/  in  the  Discount 
Register. 

You  will  also  add  and  rule  the  Journal,  carrying  the  footings  of  the  Collection  &  Exchange  and 
Deposits  columns  into  the  General  column.  {See  form  of  Journal  on  pages  18^.  and  185.)  Post  all  of 
the  items  in  the  Deposit  column,  on  the  left-hand  page,  to  the  credit  of  the  depositors  named,  in  the 
Deposit  Ledger,  and  the  footing  of  that  column  to  the  credit  of  Deposits  account  in  the  General  Ledger; 
and  post  the  items  in  the  Deposit  column,  on  the  right-hand  page,  to  the  debit  of  the  depositors  named, 
in  the  Deposit  Ledger,  and  the  footing  of  that  column  to  the  debit  of  Deposits  account  in  the  General 
Ledger.  Post  all  the  otlier  items  in  the  General  column  on  the  left-hand  i^age  to  the  credit  of  the 
respective  accounts  in  the  General  Ledger,  and  those  in  the  General  column  on  the  right-hand  page  to 
the  debit  of  the  respective  accounts.  Debit  Cash  account  in  the  General  Ledger  with  the  footing  of 
the  left-hand  page  of  the  Journal,  and  credit  it  with  the  footing  of  the  right-hand  page. 

JUNE    18,   18—. 

Received  advice  from  Wayne  County  National  Bank,  Lyons,  that  collection  No.  819  has  been  paid 
and  placed  to  our  credit     {J. ) 

Charge  W.  C.  N.  Bank,  584.75,  and  credit  R.  L.  Mason  &  Co.,  584.25,  and  Coll.  &  Exch.,  50c.  Check  Paid  and 
Entered,  or  P.  &  E.,  in  the  Collection  Tickler. 

Also  from  Farmers'  Bank,  Canton,  that  collection  No.  820  has  been  paid  and  placed  to  our 
credit.     (/. ) 

Charge  Farmers'  Bank,  1250.00,  and  credit  Stillman  &  Moore,  1249.00,  and  Coll.  &  Exch.,  1.00.  Check  P.  &  E.  in 
C.  T. 

Collection  No.  822  has  been  paid.     {J. ) 

Credit  Meyer  &  K.,  215.00,  and  check  P.  &  E.  in  C.  T.     No  charge  is  made  for  collecting  paper  payable  in  the  city. 

Discount  No.  485  has  been  i)laced  among  the  checks,  and  will  be  charged  to  the  account  of  the 
maker,  Maxwell  Day,  at  the  close  of  business  for  the  day.     {J. ) 

Note. — Since  this  note  was  made  by  one  of  our  depositors,  and  his  account  is  good  for  the  amount,  it  is  only 
necessary  to  credit  Bills  Discounted,  10000.00,  at  this  time,  and  place  the  note  among  the  vouchers  thnt  <"-e  to  be  charged 
to  depositors.    See  list  of  checks  paid,  below. 


THKORETICAL    AND   PRACTICAL   BOOK-KEEPING.  167 

Receiyed  advice  from  Wayne  County  National  Bank,  that  discount  No.  482  has  been  paid  and 
placed  to  our  credit.     (J.) 

Credit  Bills  Discounted  and  debit  W.  C.  N.  Banli  1500.00,  and  check  Paid  and  Entered,  or  P.  &  E.,  in  the 
Discount  Tickler. 

Received  draft  No.  IGl,  on  Sixth  National  Bank,  New  York,  from  Woodruff's  Bank,  Livonia,  for 
proceeds  of  discount  No.  484,  less  35c.  collection  and  25c.  exchange.     (J.) 

Credit  Bills  Discounted,  500.00,  and  debit  Coll.  &  Exch.,  50c.  The  draft  received  will  be  charged  to  Chemical 
National  Bank,  in  the  N.  Y.  Draft  Register,  later  in  the  day,  with  other  drafts  received  during  the  day. 

Received  the  paper  described  below,  from  the  following  banks,  for  collection  and  credit:  From 
Norwich  National  Bank,  H.  B.  Cook  &  Co.'s  sight  draft  for  4150.00,  on  N.  Fisher  &  Co.  Presented, 
collected  and  credited.     (C  JL,  J.) 

Credit  N.  N.  Bank,  4150.00,  and  check  thus  y'  in  both  check  columns  in  the  Collection  Register. 

Note  No.  1.— All  paper  received  for  collection  from  abroad  is  entered  in  the  Collection  Register.  If  it  is  time 
paper,  it  is  also  entered  in  the  Collection  Tickler  and  checked  thus  /in  the  "Tickler  Check"  column  in  the  Collection 
Register.  CaaA^  i-t^uvu*,,   ifol-Jiit^  . 

Note  No.  2. — If  payable  at  sight,  it  is  collected  and  checked  thus  /  in  the  "  Paid  "  column  in  the  Collection  Regis- 
ter, and  credited  to  the  bank  from  whom  we  received  it  in  the  Journal,  and  again  checked  in  the  "  Tickler  Check" 
column  in  the  Collection  Register.  The  "  Tickler  Check  "  column  thus  serves  the  double  purpose  of  checking  sight 
pape.r  when  credited  and  time  paper  when  entered  in  the  Tickler.  ^ 

* 

Note  No.  .*?. — All  paper  received  for  collection,  payable  abroad,  is  also  entered  in  the  Collection  Register.  If  time 
paper,it'should  also  be  entered  in  the  Collection  Tickler,  and  checked  thus  /  in  the  "  Tickler  Check"  column,  and  sent 
forward  for  collection.  iVoc--«h-fet— j   ^f^  i' •-■^t-W^Cri- ^  "^    Mu^y*^.  7i*^ ^/^^"'^ 

Note  No.  4. — If  sight  paper,  receivoa  on  deposit,  or  as  cash,  it  should  be  entered  in  the  Collection  Register,  charged 
in  the  Journal  to  the  bank  to  whom  sent,  and  checked  in  the  "Tickler  and  Cr.  Check  "  column  in  the  Collection  Register 
In  case  of  the  dishonor  of  sight  paper  received  as  cash,  the  party  from  whom  it  was  received  would  be  required  to  take 
it  up,  and  the  bank  to  whom  it  was  sent  and  charged  would  be  credited  back.  If  sight  paper,  received  for  collection  for 
others,  enter  it  in  the  Collection  Register  and  send  forward  for  collection. 

Note  No.  5. — No  charge  is  made  for  collecting  paper  payable  in  the  city  received  from  banks  with  whom  we  have 
regular  dealings,  nor  do  such  banks  make  a  charge  to  us  in  similar  cases.  The  accommodation  is  reciprocal.  The  fee 
for  collecting  is  paid  by  the  party  for  whom  the  collection  is  made,  and  retained  by  the  bank  that  received  the  paper  for 
collection.  In  case,  however,  that  one  bank  were  required  to  do  an  amount  of  collecting  greatly  in  excess  of  its  corre- 
spondent, an  equitable  compensation  would  be  allowed  by  the  bank  that  received  the  paper  to  the  bank  that  collected  it. 
This  is  a  matter  of  agreement  between  banks. 

From  Exchange  National  Bank,  Bristol,  D.  J.  Loomis'  check  on  Union  Bank,  City,  for  493.18. 
Collected.     {C.  R.,  J.) 

Credit  Exchange  N.  Bank,  Bristol,  493.18.     See  Note  No.  2,  above. 

From  Traders'  National  Bank,  Kingston,  A.  B.  Wilson's  sight  draft  on  Johnson  Mfg.  Co.,  for 
573.90.     Presented,  accepted  and  placed  among  the  checks.     (C.  R.,  J.) 

Credit  Traders'  N.  Bank,  Kingston,  573.90. 

Note. — Since  Johnson  Mfg.  Co.  have  an  account  with  us,  it  is  only  necessary,  if  their  account  is  good  for  the 
amount  of  this  draft,  for  them  to  accept  it,  payable  at  our  bank.  We  then  place  it  among  the  checks,  and  charge  it  up 
at  the  close  of  business.     See  list  of  checks  for  this  date. 

Received  remittances  in  drafts  on  New  York  from  the  following  banks,  on  account:  No.  943,  First 
National  of  Rockford,  on  Broadway  Bank,  for  2500.00;  No.  341,  Geo.  K.  Warren  &  Co.,  Bath,  on 
Union  Trust  Co.,  for  1500.00. 

Credit  the  banks  from  whom  the  drafts  are  received  at  once,  in  the  Journal,  and  enter  the  drafts  on  the  left-hand 
side  of  the  N.  Y.  Draft  Register,  with  other  drafts,  later  in  the  day. 

The-  following  sight  drafts,  dated  this  day,  on  individuals  and  firms,  received  on  deposit  from  our 
customers,  and  included  in  deposits  enumerated  below,  have  been  sent  to  our  correspondents  for  our 
credit: 

W.  F.  Jameson,  on  D.  B.  Hill,  Lyons,  for  225.00.  Sent  to  Wayne  Co.  National,  and  charged  to 
their  account.     [V.  R.,  J.) 

Johnson  Mfg.  Co.,  on  P.  G.  Warren,  Bristol,  for  2800.00.  Sent  and  charged  to  Excliango  National 
Bank,  Bristol.     {C.  R.,  J.) 


168  THEORETICAL    AWD    PRACTICAL    BOOKKEEPING. 

Maxwell  Day,  on  D.  L.  Price  &  Co.,  Kingston,  for  340.00.  Sent  and  charged  to  Traders'  National 
Bank,  Kingston.     {C.  R.,  J.) 

Jas.  Angle,  on  A.  A.  Wildman,  Rockford,  for  1350.00.  Sent  and  charged  to  First  National  Bank, 
Rockford.     (C.  Ji.,  J.) 

Discounted  the  following  paper:  For  Johnson  Mfg.  Co.,  P.  L.  Paine's  accepted  draft,  at  30  days 
from  June  15th,  payable  at  First  National  Bank,  Lyons,  for  4325.00.  Discount,  21.63;  Collection, 
4.00;  Exchange,  5.41.     Sent  to  W.  C.  N.  Bank.     {£>.  R.,  D.  T.) 

For  Maxwell  Day,  D.  H.  Davis'  note,  at  3  months  from  April  loth,  payable  at  Woodruff's  Bank, 
Livonia,  for  1500.00.  Discount,  7.50;  Collection,  1.00;  Exchange,  1.88.  Sent  Woodruff's  Bank. 
(D.  R.,  D.  T.) 

For  Samuel  Wilder,  Isaac  Willis'  note,  at  60  days  from  May  10th,  payable  at  Farmers'  Bank,  Can- 
ton, for  2394.80.  Discount,  9.58;  Collection,  3.00;  Exchange,  2.98.  Sent  Farmers'  Bank.  {D.  R., 
D.  T.) 

For  Thos.  H.  Wilson,  J.  D.  Slinltz'  note,  at  1  month  from  date,  payable  at  Coming's  Bank,  Rich- 
mond, for  398.50.  Discount,  2.19;  Collection,  50c.;  Exchange,  50c.  Sent  Coming's  Bank.  {D.  R., 
D.  T.) 

For  R.  L.  Mason,  T.  G.  Lord's  note,  at  4  months  from  March  9th,  payable  at  Norwich  National 
Bank,  for  960.00.  Discount,  3.84;  Collection,  50c.;  Exchange,  1.30.  Sent  Norwich  National  Bank. 
{Z>.  R.,  D.  T.) 

Received  the  following  paper  for  collection:  From  W.  F.  Jameson,  draft  at  10  days  from  date,  on 
W.  L.  Peters  &  Co.,  Hoboken,  for  918.75.     Sent  Chemical  Bank.     {C.  R.,  C.  T.) 

From  Jas.  Angle,  note  of  W.  F.  Burroughs,  at  3  months  from  May  1st,  payable  at  Exchange  Bank, 
City,  for  1390.00.     {C.  R.,  C.  T.) 

From  Ray  Bros.,  note  of  Miller  &  Co.,  at  3  months  from  April  30th,  payable  at  First  National 
Bank,  Kingston,  with  interest,  for  483.60.     Sent  Traders'  National,  Kingston.     (C.  R.,  C.  T.) 

From  Meyer  &  Kauffman,  draft  at  15  days  from  date  on  Wendell  &  Holmes,  Canton,  for  1194.83. 
Sent  Farmers'  Bank,  Canton.     {C.  R.,  C.  T.) 

Drew  the  following  drafts  on  Chemical  Bank:  No.  593,  favor  Lord  &  Bennett,  1141.80;  Exch., 
1.00.  No.  593,  favor  Bingham,  F.  &  W.,  132.30;  Exch.,  35c.  No.  594,  favor  Wm.  Raymond,  437.00; 
Exch.,  50c.  No.  595,. favor  Johnson  Mfg.  Co.,  6444.00;  Exch.,  6.00.  No.  596,  favor  Ray  Bros., 
4496.00;  Exch.,  4.00.     No.  597,  favor  R.  L.  Mason,  4346.00;  Exch.,  4.00.     {N.  Y.  D.  R.) 

The  following  drafts  on  New  York,  received  during  the  course  of  to-day's  business,  have  been 
remitted  to  Chemical  Bank  for  our  credit:  No.  161,  Woodruff's  Bank  of  Livonia,  on  Sixth  National, 
499.50;  No.  943,  First  National  of  Rockford,  on  Broadway  Bank,  3500.00;  No.  341,  Geo.  K.  Warren 
&  Co.,  Bath,  on  Union  Trust  Co.,  1500.00;  No.  108,  Ward's  Bank  of  Union,  on  Third  National,  86.90; 
No.  347,  First  National  of  Butler,  on  Chemical,  583.11;  No.  4043,  Second  National  of  Byron,  on 
Broadway  Bank,  3586.74;  No.  48,  Clark's  Bank  of  Warsaw,  on  Sixth  National,  138.18.  {N.  Y.  D.  R. 
See  form  on  page  192. ) 

Received  the  following  deposits:  T.  J.  &  W.  E.  Upton,  1175.00;  Benj.  Thomas  &  Son,  435.57; 
Bingham,  Field  &  Ward,  2850.00;  Samuel  Wilder,  894.13;  Maxwell  Day,  948.75;  Johnson  Mfg.  Co., 
3480.00;  Meyer  &  Kauffman,  550.00;  Thos.  H.  Wilson,  3294.18;  Jas.  Angle,  1840.00;  D.  J.  Slocum, 
486.78;  W.  F.  Jameson,  1500.00.     (/.) 

Paid  the  following  checks:  Lord  &  Bennett,  3500.00,  1143.80,  177.14;  Bingham.  Field  &  Ward, 
133.40,  1893.18,  450.00;  Wm.  Raymond,  1000.00,  437.50,  140.00;  Johnson  Mfg.  Co.,  6450.00,  573.90; 
Maxwell  Day,  10000.00;  Ray  Bros.,  115.00,  973.63,  4500.00;  Thos.  H.  Wilson,  56.75,  1394.11,  250.00; 
Stillman  &  Moore,  7500.00;  R.  L.  Mason,  4250.00,  3400.00.     (/.) 

Collection  and  Exchange,  from  Teller's  Memorandum,  6.94.     (/.) 

Paid  cash  for  Office  Stationery,  Postage,  etc.,  13.18.     (/.) 

Balance  the  New  York  Draft  Register,  and  carry  the  footing  of  the  debits  and  credits  for  the  day 
to  the  Journal,  the  aggregate  of  drafts  drawn  on  Chemical  Bank  to  the  credit  of  that  bank,  the  footing 
of  Exchange  column  to  the  credit  of  Collection  &  Exchange,  and  remittances  to  Chemical  Bank  to  the 
debit  of  that  bank.  Also  rule,  foot  and  post  tlie  Discount  Register  and  the  Journal,  as  directed  on 
page  166. 


THEORETICAL    AND   PBAOTICAI,   BOOK-KEEPING.  169 

JUNE    19,  18—. 

Received  advice  from  Chemical  National  Bank,  New  York,  that  collection  No.  858  has  been  paid. 
Charge  Chemical  Bank  in  N.  T.  D.  R.,  119.75.     Credit  T.  J.  &  W.  E.  Upton,  119.25;  Coll.  &  Exch.,  50c.,  in  J. 
Also  that  collection  No.  854  has  been  paid. 

Charge  Chemical  Bank,  432.50,  N.  Y.  D.  R.;  and  credit  R.  L.  Mason,  432.00,  and  Coll.  &  Exch.,  50c.,  J. 
Received  advice  from  First  National,  Rockford,  that  collection  No.  860  has  been  paid. 
Charge  First  National,  Rockford,  143.90.     Credit  Wm.  Raymond,  143,40;  Coll.  &  Exch.,  50c.     J. 
Received  advice  from  Geo.  K.  Warren  &  Co.,  Bath,  that  collection  No.  821  has  been  paid. 
Charge  Geo.  K.  W.  &  Co.,  817.00,  and  33  days  interest,  4.49;  total,  821.49.     Credit  Thos.  II.  Wilson,  820.99,  and 
Coll.  &  Exch.,  50c.     J. 

From  Norwich  National  Bank,  that  collection  No.  833  has  been  paid  and  credited. 
Credit  Wm.  Raymond,  368.40,  and  Coll.  &  Exch.,  50c.;  and  charge  Norwich  National,  368.90.     J. 

From  Farmers'  Bank,  Canton,  that  collection  No.  856  has  been  paid. 

Credit  6.  H.  Perkins,  in  Transient  Accounts,  925.68;  and  Coll.  &  Exch.,  50c. ;  and  charge  Farmers'  Bank,  926.18.    J. 

Note. — The  "  Transient  Accounts  "  account,  in  the  Deposit  Ledger,  is  used  instead  of  opening  a  separate  account 
with  each  person,  not  a  regular  depositor,  who  leaves  a  single  note  or  draft  for  collection,  or  who  deposits  money  to  meet 
a  note  or  a  draft  falling  due  at  our  hank.  We  credit  the  person  for  whom  we  make  the  collection,  or  from  whom  we 
receive  the  deposit,  in  the  Journal,  and  post  the  item  to  the  credit  of  Tran.sient  Accounts,  using  the  person's  name  in 
explanation.  When  the  amount  is  drawn  out,  we  charge  the  person  in  the  Journal,  and  post  it  to  the  debit  side  of 
Transient  Accounts,  making  the  entry  on  the  same  line  in  the  Ledger  as  that  containing  the  credit  to  the  party. 

Received  from  Exchange  National  Bank,  Dansville,  their  draft;  No.  1486,  on  Bowery  Bank,  New 
York,  for  10494.75,  proceeds  of  discount  No.  486,  less  their  charge  for  collection,  5.25.  (/.  Check 
P.  &  E.  inD.  T.)  . 

Note. — The  Exchange  National  Bank  of  Dansville,  not  being  a  regular  correspondent,  charges  us  one-twentieth 
.per  cent,  for  collecting  paper  sent  them.  This  charge  is  about  one-half  of  that  made  by  us  to  the  customer  for  whom 
we  discounted  the  note,  the  difference  showing  our  profit  in  that  transaction  from  collection  alone.  Credit  Bills  Dis- 
counted, 10500.00,  and  debit  Coll.  &  Exch.,  5.25,  in  the  Journal.  The  difference  represents  the  draft  received,  which  will 
be  sent  and  charged  to  Chemical  Bank  with  others  at  the  close  of  the  day. 

Discounts  Nos.  487,  489  and  490,  payable  in  the  city,  have  been  paid.     {J. ) 

Received  the  paper  described  below,  from  the  following  banks,  for  collection  and  credit:  From 
Geo.  K.  Warren  &  Co.,  Bath,  A.  L.  Underbill's  draft  on  Harvey  Brown,  at  2  days'  sight,  942.17.  The 
drawee  accepts  the  draft  upon  presentation,  payable  at  Union  Bank,  City.     [G,  R.,  G.  T.) 

From  First  National,  Rockford,  Brooks  &  Smith's  sight  draft  on  0.  W.  Lansing,  1455.00.  Col- 
lected and  credited  to  First  National  Bank,  Rockford,  1455.00.     (C.  R.,  J.) 

From  Farmers',  Canton,  S.  P.  Stevens'  sight  draft  on  M.  M.  Ward,  32.18.  Collected  and  credited 
to  Farmers',  Canton,  32.18.     (C.  R.,  J.) 

From  First  National,  Belleville,  B.  T.  Jones  &  Co.'s  sight  draft  on  Yeoman  &  Blake,  411.75. 
Collected  and  remitted  draft  No.  598  on  Chemical  Bank  for  411.50.     Collection,  25c. 

Note. — This  draft  will  be  credited  to  Chemical  Bank,  with  others,  at  close  of  banking  hours.  Since  the  First 
National  Bank  of  Belleville  is  not  a  regular  correspondent,  we  make  a  charge  for  collecting  the  foregoing  draft,  but  only 
one-half  of  the  charge  we  would  make  to  an  individual.  No  charge  for  exchange.  See  list  of  drafts  drawn  on  Chemi- 
cal Bank. 

Received  remittances  from  our  correspondents,  on  account,  as  follows:  From  Wayne  Co.  National, 
draft  No.  4142,  on  Fifth  National,  New  York,  for  5000.00.  From  Third  National,  Newport,  draft 
No.  372,  on  Bowery  Bank,  New  York,  for  1287.19.     (J.    Credit  the  banks  making  these  remittances.) 

Note. — These  drafts,  with  others  received  during  to-day's  business,  will  be  remitted  to  Chemical  Bank  at  the  close 
of  banking  hours,  and  at  that  time  will  be  charged  to  Chemical  Bank  in  the  N.  Y.  D.  R. 

Remitted  our  draft.  No.  599,  on  Chemical  Bank,  for  3000.00,  to  Norwich  National  Bank,  on 
account.     (J. ) 

Note.— This  will  be  credited  to  Chemical  Bank,  with  others,  at  the  close  of  business.  Debit  Norwich  Bank.  This 
could  be  entered  in  the  N.  Y.  D.  R.  at  once,  but  these  drafts  are  usually  torn  from  a  stub  when  issued,  and  are  entered 
in  the  N.  Y.  D.  R.  from  the  stubs  at  the  close  of  the  day. 


170  THEORETICAL    AND    PRACTICAL    BOOK-KEEPING. 

The  following  sight  drafts  on  individuals  and  firms,  received  on  deposit,  have  been  sent  forward  for 
collection  and  credit:  Lord  &  Bennett,  on  W.  H.  Atwater,  Lyons,  311.50;  sent  and  charged  to  Wayne 
Co.  National.  Wm.  Kaymond,  on  W.  Dunn,  Corning,  275.50;  sent  Livingston's  Bank,  and  charged  to 
Livingston's  Bank  in  Sundry  Banks  and  Bankers  account.     ( C.  E.) 

Note.  — Livingston's  Bank  not  being  a  regular  correspondent,  we  do  not  wish  to  open  a  separate  account  with  it. 
We  therefore  open  an  account  with  Sundry  Bank.s  and  Bankers,  and  debit  that  account  for  the  amount  of  the  draft  sent 
Livingston's  Bank.  Debit  Livingston's  Bank  in  the  Journal,  and  place  S.  B.,  the  initials  for  Sundry  Banks  and  Bankers, 
after  the  entry,  and  post  the  item  to  Sundry  Banks  and  Bankers  account  in  the  General  Ledger.  When  the  proceeds  are 
received,  credit  Livingston's  Bank  for  the  face  of  tlie  draft,  and  post  it  to  the  credit  of  Sundry  Banks  and  Bankers 
account,  on  the  same  line  with  the  debit  to  Livingston's  Bank,  and  debit  Coll.  &  Exch.  in  the  Journal  for  the  collection. 

Discounted  the  following  paper:  For  D.  J.  Slocum,  Ward  &  Cobb's  note,  at  30  days  from  date, 
for  3000.00,  indorsed  by  Jas.  Jackson,  Jr.,  payable  at  Second  National  Bank,  Lyons;  sent  Wayne  Co. 
National  for  collection.     Discount,  16.50;  Collection,  3.00;  Exchange,  3.75. 

For  Jas.  Angle,  Young  &  Baldwin's  note  for  380.00,  at  15  days  from  date,  payable  at  Union  Bank, 
City.     Discount,  1.14. 

For  L.  J.  Farnsworth,  T.  K.  Scott's  note  for  1800.00,  at  1  month  from  15th  inst.,  payable  at 
Exchange  Bank,  City.     Discount,  8.70. 

For  Bingham,  Field  &  Ward,  Wm.  Eaymond's  note  for  1450.00,  at  5  days  from  this  date,  payable 
at  our  bank.     Discount,  1.93. 

For  Meyer  &  Kauffman,  their  note  at  20  days  from  this  date,  for  2000.00,  indorsed  by  W.  M.  Bond, 
payable  at  our  bank.     Discount,  7.67.     {D.  R.,  D.  T.) 

Received  the  following  paper  for  collection;  From  D.  J.  Slocum,  his  sight  draft  on  Ward  & 
Holmes,  Lyons,  for  149.44;  sent  Wayne  County  National. 

From  Samuel  Wilder,  his  sight  draft  on  King  &  Co.,  Canton,  for  856.90;  sent  Farmers'  Bank, 
Canton. 

From  Chas.  J.  Burke,  his  sight  draft  on  Warren  &  Co.,  Belfast,  for  1492.00;  sent  First  National 
Bank,  Belfast. 

From  L.  W.  Perry,  his  sight  draft  on  Wilson  &  Caldwell,  Newport,  for  364.87;  sent  Third  National, 
Newport. 

From  Thos.  H.  Wilson,  his  sight  draft  on  Nellis  &  Knox,  Rockford,  for  182.50;  sent  First  National, 
Rockford.     {G.  R.) 

Drew  the  following  drafts  on  Chemical  Bank:  No.  598,  favor  First  National,  Belleville,  411.50; 
Esch.,  25c.  No.  599,  favor  Norwich  National,  3000.00.  No.  600,  favor  T.  J.  &  W.  E.  Upton,  400.00; 
Exch.,  50c.  No.  601,  favor  Lord  &  Bennett,  52.25;  Exch.,  15c.  No.  602,  favor  Samuel  Wilder, 
1790.26;  Exch.,  2.24.  No.  603,  favor  Johnson  Mfg.  Co.,  5992.50;  Exch.,  7.50.  No.  604,  favor  D.  J. 
Slocum,  74.75;  Exch.,  15c. 

Remitted  to  Chemical  Bank,  for  our  credit,  the  following  drafts  on  New  York,  received  during 
the  day:  No.  1486,  Exchange  National  Bank,  Dansville,  on  Bowery  Bank,  10494.75;  No.  4142,  Wayne 
County  National,  on  Fifth  National,  5000.00;  No.  372,  Third  National,  Newport,  on  Bowery  Bank, 
1287.19;  No.  1009,  First  National,  Memphis,  on  Broadway,  63.94;  No.  416,  Wheeler's  Bank,  Belleville, 
on  Second  National,  489.43;  No.  3142,  Richmond's  Bank,  Batavia,  on  Chemical,  6300.00;  No.  113, 
Ray  Bros.,  on  Cook  &  Lane,  New  York,  987.00.     {N.  Y.  D.  R.) 

Received  the  following  deposits,  as  shown  by  deposit  tickets  filed:  Lord  &  Bennett,  3000.00;  Benj. 
Thomas  &  Son,  1790.00;  L.  J.  Farnsworth,  315.00;  Wm.  Raymond,  775.00;  Johnson  Mfg.  Co.,  5275.00; 
Ray  Bros.,  2910.00;  Thos.  H.  Wilson,  1800.00;  Stillman  &  Moore,  6150.00;  R.  L.  Mason,  8219.40;  Chas. 
J.  Burke,  3926.42. 

Paid  the  following  checks:  T.  J.  &  W.  E.  Upton,  242.69,  400.00;  Lord  &  Bennett,  52.75,  146.90, 
2234.46;  Bingham,  Field  &  Ward,  824.50,  640.00,  1138.55;  Samuel  Wilder.  2134.30,  86.25;  Johnson 
Mfg.  Co.,  896.81,  27.50,  6000.00;  Ray  Bros.,  4500.00;  Jas.  Angle,  1690.00,  47.25;  D.  J.  Slocum,  75.00, 
1792.63,  250.00.     {J.) 

Collection  and  Exchange,  from  Teller's  Memorandum,  16.92. 

Rule  and  foot  the  New  York  Draft  Register,  and  carry  tlie  results  to  the  Journal.  Rule,  foot  and 
post  the  Discount  Register  and  the  Journal,  as  directed  on  page  166. 


THEORETICAL    AND    PRACTICAL    BOOK-KEEPING.  171 

JUNE    20,   18—. 

Received  adTiee  that  the  following  collections  have  been  paid:     No.  824;  Coll.  &  Exch.,  35c.     No. 
835;  Coll.  &  Exch.,  50c.     No.  826;  Interest,  8.16;  Coll.  &  Exch.,  1.00.     (J.) 
Collection  No.  857  has  been  paid. 

Credit  Jas.  Angle,  750.00,  and  33  days  interest,  4.13;  total,  754.13.  J.  Be  careful  to  make  tlie  proper  check  mark 
in  the  C.  T. 

Received  advice  from  Wayne  County  National  Bank  that  discount  No.  488  has  been  paid,  7500.00. 
{J.) 

Discount  No.  493,  payable  at  our  bank,  has  been  charged  to  the  account  of  the  maker.     (</.) 

Note. — This  note  was  made  by  one  of  our  depositors,  and  made  payable  at  our  bank.  It  is  only  necessary,  there- 
fore, since  the  maker's  account  is  good  for  the  amount,  to  place  the  note  among  the  checks  and  charge  it  up  at  the 
close  of  business,  as  a  check  would  be  charged.  See  list  of  checks  for  this  date.  All  the  entry  necessary  at  this  time 
is  to  credit  Bills  Discounted  in  the  Journal. 

Received  3000.00  on  deposit  from  W.  G.  Snyder.     Issued  him  a  Certificate  of  Deposit,  No.  703. 
Credit  Certificates  of  Deposit  in  the  Journal,  and  extend  the  amount  in  the  "  Deposit"  column. 

Note. — W.  G.  Snyder  is  not  a  customer,  and  instead  of  crediting  him  for  his  deposit,  we,  at  his  request,  issue  him 
a  Certificate  of  Deposit,  and  credit  Certificates  of  Deposit  account.     A  Certificate  of  Deposit  is  a  paper  headed  with  the 

name  and  location  of  the  bank,  and  the  date,  stating  that  Mr.  — . has  deposited  dollars  in  this  institution, 

payable  to  himself,  or  order,  upon  return  of  this  certificate  properly  indorsed,  and  is  signed  by  the  president  or  cashier, 
or  both. 

Received  the  paper  described  below,  from  the  banks  named,  for  collection  and  credit: 

From  Farmers',  Canton,  P.  G.  White's  sight  draft,  dated  19th,  on  Jas  Angle,  for  94.16.    Presented, 

accepted  and  pbiced  among  the  checks.     (6'.  R.,  J.     Cvedit  Farmers^  Canton,  94..16.) 

From  D.  G.  Lamson's  Bank,  Belfast,  C.  A.  Stone's  sight  draft,  datedlSth,  on  Hart  &  Shepard,  for 

298.75.     Collected.     Remitted  our  draft  on  Chemical  Bank  for  the  amount,  less  35c.  for  collection. 

{C.  R.) 

This  draft  will  be  entered  in  the  N.  Y.  D.  R.  at  the  close  of  business  hours.  No  entry  at  this  time  excepting  in  the 
C.  R.,  for  the  reasons  explained  on  page  169. 

From  Wayne  County  National,  Weaver  &  Jane's  sight  draft  on  Peter  Wallace  &  Co.,  for  873.35, 
dated  19th.     Collected.     {Credit  Wayne  Co.  National,  873.26.     G.  R.,  J.) 

From  Traders'  National,  Kingston,  Jas.  Angle's  note,  at  3  months  from  March  33d,  indorsed  by 
E.  H.  Mott  &  Co.,  for  1400.00,  payable  at  our  bank.     {C.  R.,  C.  T.) 

From  Wisner  &  Clark's  Bank,"^Clyde,  W.  A.  Hood's  note,  indorsed  by  C.  A.  Parry  &  Co.,  for  375.00, 
at  30  days  from  May  35tli,  payable  at  Exchange  Bank,  City.     ( C.  R.,  C.  T. ) 

From  Norwich  National,  Warren  &  Sharjj's  siglit  draft  on  L.  W.  Gage  for  163.11,  dated  June  19th. 
Collected.     {Credit  Norwich  National  Bank,  162.11.     C.  R.,  J.) 

The  following  described  paper,  received  on  deposit,  has  been  sent  to  the  banks  named,  for  collec- 
tion, and  charged  to  their  resjiective  accounts:  Samuel  Wilder's  sight  draft  on  Tubbs  «&  Co.,  Kingston, 
for  194.50;  to  Traders'  National,  Kingston.  Thomas  H.  Wilson's  sight  draft  on  Norman  Lacy, 
Rockford,  for  34.17;  to  First  Ntitional,  Rockford.  Johnson  Mfg.  Co.'s  sight  draft  on  B.  A.  Cole, 
Livonia,  for  86.40;  sent  to  Woodruff's  Bank,  Livonia. 

Charge  Woodruff's  Bank  in  Sundry  Banks  and  Bankers  account.     See  note  on  page  169. 

Lord  &  Bennett's  sight  draft  on  M.  F.  Burgess,  Newport,  for  346.94;  sent  Third  National,  New- 
port. W.  F.  Jamieson's  sight  draft  on  L.  M.  Newton,  Bath,  for  733.81;  sent  Geo.  K.  Warren  &  Co., 
Bath.  Bingham,  Field  &  Ward's  sight  draft  on  Newman  &  Gregg,  Bristol,  for  17.39;  sent  Exchange 
National,  Bristol.     (C.  R.,  J.) 

Received  the  following  paper  from  our  customers  and  others  for  collection:  From  Ray  Bros.,  sight 
draft  on  G.  H.  Wilson  &  Co.,  Holley,  for  183.90;  sent  City  Bank,  Holley.  From  Dunn  k  Cole,  sight 
draft  on  D.  F.  Coates,  Geneva,  for  863.50;  sent  Exchange,  Geneva.  From  Thos.  H.  Wilson,  Hadley 
&  Holmes'  note,  at  3  months  from  March  36th,  for  918.92,  payable  at  First  National,  Lyons;  sent 
Wayne  County  National,  Lyons.     (C.  R. ,  C.  T.) 

Discounted  the  following  paper:  For  R.  L.  Mason,  Havens  &  Co.'s  note  for  450.00,  at  30  days 
from  this  date,  payable  at  Union  Bank,  City.     Discount,  2.48. 


172  •       THEORETICAL    AND   PRACTICAL   BOOK-KEEPING. 

For  Samuel  Wilder,  his  note  for  1500.00,  indorsed  by  J.  A.  Lindsay,  at  1  month  from  tlie  19th  inst., 
payable  at  our  bank.     Discount,  8.00. 

For  Meyer  &  KaufPman,  Robert  Moore's  note  for  2200.00,  at  20  days  from  this  date,  jiayable  at  First 
National,  Lyons.     Discount,  8.43;  Coll.,  2.00;  Exch.,  2.75.     Sent  to  Wayne  County  Ivational. 

For  J.  A.  Bush,  Pliilip  Warner's  note  for  500.00,  indorsed  by  John  Rice,  at  30  days  from  this  date, 
payable  at  Union  Bank,  City.     Proceeds  paid  in  cash.     Discount,  2.75.     {D.  R.,  D.  T.,  J.) 

Note. — J.  A.  Bush  not  being  a  regular  depositor,  we  pay  him  the  amount  of  the  proceeds  of  this  note  in  cash. 
Write  "Cash "  after  his  name  in  the  " For  Whom  Discounted "  column  in  the  Discount  Register,  and  check  it  so  that  it 
will  not  be  posted. 

In  transactions  of  this  kind  the  discount  clerk  draws  a  check  for  the  amount  of  the  proceeds,  and  gives  it  to  the 
person  for  whom  the  note  was  discounted,  who  signs  it  and  checks  out  the  amount.  The  check  is  placed  among  tlie 
checks  {see  checks  below)  and  charged  to  the  maker  in  the  Journal  at  the  close  of  the  day,  and  the  entry  checked  as  in 
the  Discount  Register. 

Another  way,  and  the  one  pursued  In  the  last  half  of  this  set,  is  to  furnish  the  person  for  whom  the  paper  was 
discounted  a  check  signed  by  the  cashier,  called  a  "cashier's  check,"  which  is  cashed  by  the  paying  teller  and  placed 
among  the  checks.  This  check  is  charged  to  Cashier  account  in  the  Journal,  and  checked  where  the  ordinary  form  of 
Journal  is  used,  or  entered  in  the  "Checks  in  Detail "  column  where  the  Balance  Ledger  is  used. 

In  the  latter  case,  that  is,  where  the  Balance  Ledger  is  used,  the  amount  in  the  Discount  Register  would  have  to  be 
posted  to  the  credit  of  Cashier  account,  by  entering  it  in  the  "Deposits"  column,  and  this  would  balance  the  account. 

For  Wyman  &  Fisher,  their  note,  indorsed  by  J.  H.  Price,  at  1  month  from  the  16th  instant,  for 
600.00,  payable  at  Fanners',  Canton.  Proceeds  paid  in  cash.  Discount,  2.90.  Sent  Farmers'  Bank. 
i^See  note  above.    D.  R.,  D.  T.,  J.) 

For  Johnson  Mfg.  Co.,  Darwin  &  Kent's  note  for  1500.00,  at  30  days  from  the  16tli  inst.,  payable 
at  Norwich  National,  Norwich.     Discount,  7.25;  Coll.,  1.00;  Exch.,  1.88.     Sent  to  Norwich  National. 

Drew  the  following  drafts  on  Chemical  Bank:  No.  605,  favor  Johnson  Mfg.  Co.,  998.75;  Exch., 
1.25.  No.  606,  favor  D.  C.  Allison,  17.00;  Exch.,  15c.  No.  607,  favor  W.  F.  Jameson,  244.50;  Exch., 
50c.  No.  608,  favor  L.  S.  Lansing,  116.00;  Exch.,  25c.  No.  609,  favor  D.  J.  Slocum,  4993.75;  Exch., 
6.24.  No.  610,  favor  P.  J.  Dudley,  73.50;  Exch.,  15c.  No.  611,  favor  Meyer  &  Kauifman,  2496.87; 
Exch.,  3.12.  No.  612,  favor  W.  B.  Sage,  1000.00;  Exch.,  1.25.  No.  613,  favor  Lord  &  Bennett,  1598.00; 
Exch.,  2.00.     No.  614,  favor  D.  G.  Lamson's  Bank,  298.50;  Exch.,  25c. 

Remitted  to  Chemical  Bank,  for  our  credit,  the  following  drafts  on  New  York,  received  during  the 
day:  No.  1042,  First  National,  Princeton,  on  Bowery  Bank,  192.83;  No.  213,  Woodrufi's,  Livonia,  on 
Sixth  National,  1482.90;  No.  194,  Ward's  Bank,  Union,  on  Third  National,  18.25;  No.  1516,  Exchange 
National,  Dansville,  on  Bowery,  411.07;  No.  2104,  Commercial,  Corning,  on  Metropolitan,  1242.16;  No. 
13492,  First  National,  Waverly,  on  Union  Trust  Co.,  27.90;  No.  826,  City  Bank,  Holley,  on  Broadway, 
146.83;  No.  1513,  Exchange,  Geneva,  on  Third  National,  875.00;  No.  482,  First  National,  Butler,  on 
Chemical,  218.11. 

Received  the  following  deposits:  W.  F.  Jameson,  584.00;  D.  J.  Slocum,  1395.18;  Jas.  Angle, 
2873.00;  Thos.  H.  Wilson,  843.10;  Meyer  &  Kauflman,  4200.00;  Johnson  Mfg.  Co.,  5125.00;  Samuel 
Wilder,  943.92;  Bingham,  Field  &  Ward,  550.00;  Benj. Thomas  &  Son,  1975.00;  Lord  &  Bennett,  2400.00. 

Opened  an  account  with  J.  H.  Wentworth  &  Co.,  and  received  a  depiosit  of  1250.00. 

Paid  tlie  following  checks:  Johnson  Mfg.  Co.,  1000.00,  396.00,  2584.00,  3000.00;  T.  J.  &  W.  E. 
Upton,  985.00,  146.32,  75.00,  843.90;  W.  F.  Jameson,  245.00,  2940.00,  133.25;  D.  J.  Slocum,  5000.00; 
Jas.  Angle,  3500.00,  200.00,  75.00,  186.90,  94.16;  Thos.  H.  Wilson,  3000.00,  2735.50.  Meyer  &  Kauff- 
man,  2500.00,  1500.00,  49.26;  Lord  &  Bennett,  85.00,  242.50,  1600.00;  G.  H.  Perkins  {T.  A.),  925.68; 
J.  A.  Bush,  497.25  {check  tins  and  the  following  entry  as  explained  in  note  above) ;  Wyman  &  Fisher,  597. 10. 

Collection  and  Exchange,  from  Teller's  Memorandum,  27.85. 

Rule,  foot  and  post,  as  heretofore  instructed. 

JUNE    21,   18-. 

Received  advices  that  the  following  collections  have  been  paid:  No.  878;  Coll.  &  Excli.,  50c. 
No.  879;  Coll.  &  Exch.,  50c. 

Received  from  First  National  Bank  of  Belfast  a  draft.  No.  8040,  on  Ninth  National  Bank,  for  pro- 
ceeds of  No.  880,  less  50c.  for  collection. 

Credit  Coll.  &  Exch.,  50c.,  the  difference  between  o-ur  charge  and  that  of  Belfast  Bank;  and  credit  Clias,  .T.  Burke, 
1491.00. 

No.  881;  CoU.  &  Exch.,  50c.     No.  882;  Coll  &  Exch.,  50c. 

Credit  L.  W.  Perry,  in  Transient  Accounts,  for  the  proceeds  of  collection  No.  881. 

Collection  No.  832  has  also  been  paid.     (cT.) 


THEORETICAL    AND    PRACTICAL    BOOK-KEEPING.  173 

Discounts  Nos.  493,  494  and  495  have  been  paid.     (/. ) 

No.  493  was  made  by  one  of  our  depositors,  and  since  his  account  is  good  for  the  amount,  we  place  the  note  among 
the  checks  and  charge  it  up  with  the  cliecks,  at  the  close  of  the  day.     At  this  time  credit  Bills  Discounted  only. 

Received  the  following  described  paper,  from  the  banks  named,  for  collection.  All  of  the  sight 
drafts  were  paid  upon  presentation. 

From  Third  National,  Newport,  Clark  &  Co.'s  sight  draft,  dated  19th,  on  J.  H.  Rich,  for  197.46. 

From  Exchange  National,  Bristol,  L.  M.  DePuy's  sight  draft,  dated  30tli,  on  M.  W.  Cheney,  City, 
for  388.19. 

From  Wayne  County  National,  J.  F.  Osgood's  note  at  90  days  from  April  19tli,  indorsed  by  W.  P. 
Follett,  payable  at  Union  Bank,  City,  for  1385.00. 

From  Cascade  Bank,  Portage,  Norman  Seymour's  sight  draft,  dated  19th,  on  W.  F.  Lawrence,  City, 
for  843.90.     Remitted  draft  No.  G15,  on  Chemical  Bank,  for  tlie  proceeds,  less  25c.  for  collection. 

From  Traders'  National,  Kingston,  Duncan  Jones'  sight  draft,  dated  19th,  on  H.  P.  Randall,  for 
246.83.     (C.  R.,J.) 

The  following  paper,  received  on  deposit,  has  been  sent  to  the  banks  named  for  our  credit:  D.  J. 
Slocum's  sight  draft,  dated  20th,  on  Frank  W.  Brown,  Corning,  for  382.00;  sent  Livingston's  Bank, 
Corning. 

Charge  Livingston's  Bank,  in  Sundry  Banks  and  Bankers  account,  for  the  draft. 

Maxwell  Day's  sight  draft,  dated  21st,  on  Wing  &  Walker,  Rockford,  for  181.40;  sent  and  charged 
to  First  National  Bank,  Rockford.  J.  H.  Wentworth  &  Co.'s  sight  draft,  dated  30th,  on  Holmes  & 
Co.,  Geneva,,  for  23.82;  sent  Excliange  Bank,  Geneva. 

Charge  Sundry  Banks  for  the  draft  sent  Exchange  Bank. 

Wm.  Raymond's  sight  draft,  dated  21st,  on  H.  A.  Miller,  Lyons,  for  392.50;  sent  Wayne  County 
National.  R.  L.  Mason's  sight  draft,  dated,  31st  on  M.  F'.  Griffith,  Canton,  for  49.80;  sent  Farmers', 
Canton. 

Discounted  the  following  paper:  For  H.  W.  Phillips,  his  note,  indorsed  by  H.  Chase  and  Andrew 
Springer,  for  1000.00,  at  30  days  from  this  date,  payable  at  Wayne  County  National,  Lyons.  Discount, 
5.50;  Coll.,  1.00;  Exch.,  1.25.     Proceeds  paid  in  cash.     {See  note  on  page  172.) 

For  R.  L.  Mason,  Shelby  &  Co.'s  note,  at  30  days  from  the  19th,  payable  at  Norwich  National, 
for  575.00.     Discount,  2.97;  Coll.,^50c.;  Exch.,  73c. 

For  Samuel  Wilder,  Jones  &  Hardy's  note,  at  30  days  from  the  20th,  payable  at  Union  Bank,  City, 
for  173.91.     Discount,  93c. 

For  Morgan  &  Seelye,  H.  A.  Wood's  note,  indorsed  by  L.  M.  Lay,  at  30  days  from  this  date,  pay- 
able at  Exchange  Bank,  City,  for  1485.00.     Discount,  5.69.     Proceeds  paid  in  cash. 

Drew  the  following  drafts  on  Chemical  Bank,  No.  615,  favor  Cascade  Bank,  Portage,  for  843.65; 
Exch.,  25c.  No.  616,  favor  Chas.  J.  Burke,  for  9990.00;  Exch.^  13.50.  No.  617,  favor  R.  L.  Mason, 
for  3188.00;  Exch.,  3.74.  No.  618,  favor  R.  W.  Bush,  for  18.50;  Exch.,  15c.  No.  619,  favor  A.  B. 
Ward,  for  143.00;  Exch.,  35c.     No.  620,  favor  Jerome  Sackett,  for  83.19;  Exch.,  15c. 

Remitted  Chemical  Bank  the  following  drafts  and  cheeks  on  New  York,  received  during  the  course 
of  to-day's  business:  No.  8046,  First  National,  Belfast,  on  Ninth  National,  1491.50;  No.  1143,  Second 
National,  Westboro,  on  Bowery,  188.63;  No.  896,  Grangers'  Bank,  Jackson,  on  Metropolitan,  864.50; 
No.  693,  Exchange  Bank,  Norwich,  on  Sixth  National,  92.18;  No.  13483,  Manufacturers'  Bank,  Middle- 
town,  on  Ninth  National,  1143.75;  No.  132,  F.  W.  Richmond,  Goshen,  Check  on  Chemical,  945.00. 

Received  the  following  deposits:  D.  J.  Slocum,  1294.11;  Wm.  Raymond,  3250.00;  Maxwell  Day, 
3960.12;  L.  J.  Farnsworth,  3118.07;  Lord  &  Bennett,  6190.83;  T.  J.  &  W.  E.  Upton,  4114.60;  J.  H. 
Wentworth  &  Co.,  8673.95;  R.  L.  Mason,  5000.00. 

Paid  the  following  checks:  Chas.  J.  Burke,  10000.00,  546.50,  1850.00;  R.  L.  Mason,  134.65  (note), 
5000.00;  Jas.  Angle,  314.98,  1165.00,  123.16,  85.00;  Stillman  &  Moore,  3500.00,  1492.50;  Johnson  Mfg. 
Co.,  1122.50,  97.00,  2452.75;  Samuel  Wilder,  186.42,  1729.03;  Bingham,  Field  &  Ward,  916.40,  2433.76; 
Benjamin  Thomas  &  Son,  10000.00;  H.  W.  Phillips,  993.25  (/);  Morgan  &  Seelye,  1479.31  {\/). 

Collection  and  Exchange,  from  Teller's  Memorandum,  11.96. 
Add,  rule  and  post,  as  heretofore  directed. 


174 


THEORETICAL    AND    PRACTICAL    BOOK-KEEPING. 


JUNE    22,   18—. 


Eeceived  advices  that  the  following  collections  have  been  ])aid:  No.  827;  Coll.  &  Exch.,  1.00. 
No.  828;  Coll.  &  Exch.,  50c.     No.  829;  Coll.  &  Exch.,  25c.     No.  830;  Coll.  &  Exch.,  50c. 

Received  from  Exchange  Bank,  Geneva,  their  draft  No.  910,  on  First  National  Bank,  New  York, 
for  proceeds  of  Collection  No.  896.     Amount  of  draft,  803.25;  Collection,  25c. 

Credit  Dunn  &  Cole,  in  Transient  Accounts  account,  863.00;  and  credit  Collection  &  Exchange  account,  25c.  Be 
careful  to  make  the  proper  check  mark  in  tlie  C.  R.     Charge  Chemical  Bank  in  N.  Y.  D.  R.  for  Collection  No.  828. 

Collection  No.  834,  payable  in  the  city  has  been  paid. 
Credit  S.  H.  Lowe,  in  Transient  Accounts,  918.30. 

Received  from  Woodruff's  Bank,  Livonia,  draft  No.  317,  on  Sixth  National,  for  proceeds  of  Collec- 
tion No.  891,  less  their  charges  for  collection. 

Credit  Woodruff's  Bank  in  Sundry  Banks  account  for  86.40,  and  debit  Collection  &  Exchange,  13c.  The  draft  on 
New  York  will  be  entered  with  others  in  the  N.  Y.  D.  R.  at  the  close  of  the  day. 

Collection  No.  876  has  been  returned  protested,  and  the  drawers,  Lord  &  Bennett,  to  whom  it  was 
credited,  have  given  us  their  check  for  its  face,  311.50,  and  the  cost  of  protest,  1.35. 

Credit  the  bank  to  which  it  was  sent  for  the  total  amount,  212.85.  L.  &  B.'s  check  for  the  same  amount  will  be 
charged  up  with  others  at  close  of  the  day.     Mark  the  collection  "  Protested  "  m  the  "  Remarks  "  column  in  the  C.  R. 

Collection  No.  895  has  been  returned  dishonored. 

No  entry  is  required.  The  paper  was  received  for  collection,  hence  it  is  only  necessary  to  return  it  to  the  drawers, 
Ray  Bros.  It  is  not  customary  to  make  a  charge  for  our  trouble  unless  the  collection  is  made.  Mark  it  "Returned*"  or 
"  Ret."  in  the  "  Remarks ''  column  in  the  C.  R. 

Note. — When  sight  drafts  are  left  for  collection,  it  is  customary  for  the  owner  to  request  the  bank  not  to  protest 
it  if  It  is  not  paid.  In  such  a  case  a  "  No  Protest "  is  pinned  to  the  draft,  and  if  not  paid  it  is  returned  to  us  and  we 
return  it  to  the  owner.     When  we  receive  a  draft  on  deposit,  we  protest  it  if  not  paid,  to  hold  the  drawer. 

Discount  No.  496  has  been  paid. 

Discount  No.  498,  not  having  been  paid,  has  been  protested. 

No  entry.     Mark  the  note  "Protested"  in  the  "Remarks"  column  in  the  D.  T. 

Note. — Many  banks  have  an  account  with  Protested  Paper,  debiting  Protested  Paper  and  crediting  Bills  Dis- 
counted for  dishonored  Bills  Discounted;  but  the  custom  is  becoming  general  to  leave  all  discounted  paper  in  the  Bills 
Discounted  account  until  it  is  either  paid,  a  judgment  obtained,  or  it  is  found  to  be  worthless.  In  case  judgment  is 
obtained,  Judgment  Account  is  debited  for  the  entire  amount,  face  of  note,  interest  and  costs,  and  Bills  Discounted  is 
credited  for  face  of  note,  and  Interest  for  the  interest  upon  it.  In  case  the  judgment  proves  to  be  worthless,  Loss  and 
Gain  is  debited  and  Judgment  credited. 

Received  advice  that  Discount  No.  491  has  been  paid. 

Received  the  following  described  paper,  from  other  banks,  for  collection  and  credit,  all  of  which 
was  paid  upon  presentation:  From  Wayne  County  National,  W.  L.  Coot's  sight  draft  on  Myron  G. 
Peck,  dated  21st,  for  934.18,  and  Henry  J.  Lansing's  sight  draft  on  Maxwell  Day,  dated  20th,  for 
74.75.  Presented  the  latter  to  drawee,  who  has  accepted  it,  payable  at  our  bank.  The  draft  was  placed 
among  the  checks.     {See  list  of  checks  paid.) 

From  Norwich  National,  Jacob  Sterling's  sight  draft  on  Newman  &  Barry,  dated  20th,  for  13.40. 

From  First  National,  Rockford,  Dwight  Weaver's  sight  draft  on  Colton  &  Manning,  dated  21st, 
for  97.80. 

From  First  National  Bank,  Jefferson,  Homer  Sprague's  sight  draft  on  Wm.  H.  Lyon,  dated  20th 
Inst.,  for  114.93.  Collected,  and  remitted  our  draft  No.  621,  on  dhemical  Bank,  for  114.78.  Collec- 
tion, 15c.     (C.  E.     No  entry  at  this  time  in  N.  Y.  D.  R.) 

The  following  paper  received  on  deposit,  payable  abroad,  has  been  sent  to  the  banks  named  for 
collection:  Samuel  Wilder's  sight  draft,  dated  to-day,  on  W.  D.  Jones,  Newport,  for  136.92;  sent  to 
Third  National,  Newport.  James  Angle's  sight  draft,  dated  to-day,  on  L  W.  Woolson,  Bristol,  for 
23.44;  sent  Exchange  National,  Bristol.  James  Angle's  sight  draft,  dated  to-day,  on  Hurd  &  Thomas, 
Canton,  for  61.27;  sent  Farmers'  Bank,  Canton.     (C.  R.,  J.) 

Received  the  following  paper  for  collection:  From  T.  J.  &  W.  E.  Upton,  Warren  Lee's  note,  at 
90  days  from  April  3d,  for  500.00,  payable  at  Union  Bank,  City.  From  Johnson  Mfg.  Co.,  H.  Burt's 
note,  at  30  days  from  June  7th,  for  873.40,  jiayable  at  Lansing's  Bank,  Lyons;  sent  Wayne  County 


THEORETICAL    AND    PRACTICAL    BOOK-KEEPING.  175 

National.     From  David  Gray,  his  sight  draft  on  Geo.  H.  Newell,  Chester,  dated  this  day,  for  94.50; 
sent  First  National,  Chester. 

Discounted  the  following  paper.  For  Henry  Sears,  Thomas  Brooks'  note,  indorsed  by  Frank 
Woodbury  &  Son,  at  30  days  from  date,  payable  at  Union  Bank,  City,  for  525.00.  Discount,  3.89. 
Paid  cash  for  proceeds. 

For  Stillman  &  Moore,  Fanning  &  Peck's  note,  at  20  days  from  date,  payable  at  Exchange  Bank, 
City,  for  1500.00.     Discount,  5.75. 

For  Wm.  Eaymond,  Ellis  &  Hayden's  note,  at  30  days  from  the  18th  inst.,  payable  at  First 
National,  Lyons,  for  2650.00.     Discount,  12.81;  Coll.,  2.00;  Exch.,  3.31.     Sent  Wayne  Co.  National. 

Drew  the  following  drafts  on  Chemical  Bank:  No.  621,  favor  First  National,  Jefferson,  114.78; 
Exch.,  15c.  No.  622,  favor  D.  J.  Slocum,  200.00;  Exch.,  50c.  No.  G23,  favor  Johnson  Mfg.  Co., 
3500.00;  Exch.,  4.38.  No.  624,  favor  J.  H.  Wentworth  &  Co.,  100.00;  Exch.,  35c.  No.  635,  favor 
L.  J.  Farnsworth,  3000.00;  Exch.,  3.75. 

Kemitted  Chemical  Bank  the  following  di'afts  on  New  York,  received  among  the  deposits:  No. 
1009,  Howard's  Bank,  Dundee,  on  Bowery,  446.94;  No.  464,  First  National,  Preston,  on  Manufacturers 
and  Traders,  133.39;  No.  104,  J.  H.  Clark's  Bank,  Woodville,  on  Croton,  373.91;  No.  1264,  Second 
National,  Plainville,  on  Ninth  National,  3500.00;  No.  749,  Lamont  &  Thomas,  Morrisville,  on  Sixth 
National,  383.46;  No.  6891,  First  National,  Williamstown,  on  Chemical,  11.18;  No.  317,  Woodruff's 
Bank,  Livonia,  on  Sixth  National,  86.28;  No.  910,  Exchange  Bank,  Geneva,  on  First  National,  863.35. 

Eeceived  the  following  deposits:  Samuel  Wilder,  1947.80;  D.  J.  Slocum,  375.00;  E.  L.  Mason, 
1300.00;  Stillman  &  Moore,  900.00;  Jas.  Angle,  1349.63;  Lord  &  Bennett,  4480.00;  Bingham,  Field  & 
Ward,  683.11;  J.  H.  Wentworth  &  Co.,  3963.43;  Benj.  Thomas  &  Son,  1646.92. 

Paid  the  following  chfecks:  D.  J.  Slocum,  183.41,  943.86, 100.00,  200.00;  L.  J.  Farnsworth,  3000.00; 
Wm.  Eaymond,  163.50;  394  05,  873.13;  Lord  &  Bennett,  4000.00,  1263.44,  212.85;  Johnson  Mfg.  Co., 
3500.00,  150.00,  150.00;  J.  H.  Wentworth  &  Co.,  1839.38,  163.90,  100.00;  T.  J.  &  W.  E.  Upton,  113.73, 
986.09,  350.00;  Bingham,  F.  &  W.,  3150.00;  Maxwell  Day,  74.75;  Henry  Sears,  533.11. 

Collection  and  Exchange,  from  Teller's  Memorandum,  23.45. 

Add,  rule  and  post,  as  heretofore  directed,  after  which  take  trial  balance  of  the  Ledgers;  of  the 
General  Ledger  to  ascertain  whether  it  is  in  balance,  and  of  the  Deposit  Ledger  to  ascertain  wliether 
the  difference  corresponds  with  the  difference  between  the  sides  of  the  Deposits  account  in  the  General 
Ledger.     If  correct,  your  results  will  agree  with  those  on  page  183. 

Note. — The  Deposit  Ledger  and  the  Deposit  column  in  the  Journal  will  hereafter  be  dispensed  with,  and  the  Balance 
Ledger,  explained  and  illustrated  on  pages  198-201,  will  be  used  instead. 

Close  the  accounts  in  the  Deposit  Ledger  and  open  them  in  the  Balance  Ledger,  as  explained  in  1 
and  2,  page  199.     {See  illustration  on  payes  200  and  201.) 

JUNE    24,   18—. 

Received  the  following  paper,  from  the  banks  named,  for  collection:  From  Wayne  County  National 
Bank,  J.  E.  Hill's  sight  draft,  dated  23d  inst.,  on  Samuel  Wilder,  for  211.93.  The  drawee  accepts  the 
draft  upon  presentation,  payable  at  our  bank.     ( C.  R.  and  J. ) 

The  draft  was  placed  among  the  checks.     See  checks  below.     Credit  Wayne  County  National  Bank. 

From  Norwich  National  Bank,  D.  B.  Jones'  check,  dated  21st,  on  Union  Bank,  City,  for  865.70. 
{C.  R.  and  J.) 

Credit  Norwich  National  with  face  of  check. 

From  Farmers',  Canton,  Maxwell  Day's  note,  indorsed  by  Jas.  Brackett,  for  1350.00,  at  30  days 
from  May  35th,  payable  at  our  bank,  with  interest.     (C.  R.  and  C.  T.) 
Write  "Int."  small,  over  the  amount  in  each  book. 

From  Darrow's  Bank,  Peoria,  Johnson   Mfg.  Co.'s  check,  dated  21st,  on  our  bank,  indorsed  by 
Klein  &  Co.,  for  4500.00.     Placed  the  check  among  the  checks,  and  remitted  Darrow's  Bank  draft  No 
636,  on  Chemical  National  Bank,  for  the  amount,  less  2.81.     {C  R.) 

Draft  on  Chemical  National  Bank  will  be  entered  in  N.  Y.  D.  R.  with  other  drafts. 

The  following  sight  paper,  received  on  deposit,  has  been  sent  to  tlie  banks  named  for  our  credit: 
Johnson  Mfg.  Co.'s  sight  draft,  dated  to-day,  on  J.  W.  Mead,  Lyons,  for  423.34;  sent  Wayne  County 
National.     D.  J.  Slocum's  sight  draft,  dated  to-day,  on  W.  G.  Shaver,  Canton,  for  193.42;  sent  Far- 


176  THEORETICAL    AND    PRACTICAL    BOOK-KEEPING. 

mers',  Canton.  J.  H.Wentworth  &  Co.'s  sight  draft,  dated  to-day,  on  P.  A.Wood,  Kingston,  for  345.23; 
sent  Traders'  National,  Kingston.  Case  &  Weaver's  check,  dated  22d,  on  First  National,  Newport, 
indorsed  by  Maxwell  Day,  for  583.75;  sent  Third  National,  Newport.     (C  R.  and  J.) 

Eeceived  the  following  paper,  payable  abroad,  for  collection:  From  E.  L.  Mason,  J.  L.  White's 
note  for  285.00,  at  3  months  from  April  26th,  payable  at  Second  National  Bank,  Rockford;  sent  to  First 
National  Bank,  Eockford.     {0.  R.  and  G.  T.) 

From  Meyer  &  KaufEman,  their  sight  draft,  dated  to-day,  on  D.  J.  Dudley,  Bath,  for  332.15. 

Eeceired  advice  from  Norwich  National  Bank  that  collection  No.  831  has  been  paid. 

Credit  Johnson  Mfg.  Co.,  910.63,  in  "Deposits"  column  in  B.  L.  (write  the  letter  C  against  the  amount,  to  indicate 
that  it  is  a  collection),  and  Coll.  &Exch.,  50c.,  in  '■Coll.  &  Exch.  "column  in  .1.  (see  J.,  pages  200-301);  and  debit  Norwich 
National,  911.13. 

Eeceived  advice  from  Farmers'  Bank  that  collection  No.  833  has  been  paid.     Coll.  &  Excli.,  1.00. 

Collections  Nos.  837  and  872  have  been  paid. 

Credit  Stillman  &  Moore,  318.20,  in  B.  L.,  and  Geo.  K.  Warren  &  Co.,  942.17,  in  J. 

Discount  No.  498,  which  was  protested  on  the  22d,  has  been  paid,  with  83c.  interest  and  1.35 
protest  charges. 

Credit  Bills  Discounted,  2500.00;  Discount,  88c.;  and  Coll.  &  Exch.,  35c.  The  remaining  1.00  was  paid  to  the 
Notary  Public  for  protesting,  and  requires  no  entry.     Check  "P.  &  E."  in  the  D.  T.,  placing  the  date  over  such  checli. 

Discounts  Nos.  500  and  501  have  been  paid. 

No.  500  was  made  by  one  of  our  ctistomers  and  has  been  placed  among  the  checks.     See  checks. 

Discounted  the  following  paper:  For  W.  F.  Jameson,  Hardy  &  Davis'  note,  at  15  days  from  date, 
payable  at  Union  Bank,  City,  for  2000.00.     Discount,  6.00. 

For  Johnson  Mfg.  Co.,  Healy  &  King's  note,  at  10  days  from  date,  payable  at  Woodruff's  Bank, 
Livonia,  for  1750.00.     Discount,  3.79;  Coll.,  1.00;  Exch.,  2.19.     Sent  to  Woodruff's  Bank. 

Drew  the  following  drafts  on  Chemical  National  Bank:  No.  626,  favor  Darrow's  Bank,  Peoria,  for 
4497.19;  Exch.,  2.81.  No.  627,  favor  Johnson  Mfg.  Co.,  for  4500.00;  Exch.,  5.63.  No.  628,  favor  Jas. 
Angle,  for  397.84;  Exch.,  50c.  No.  629,  favor  Samuel  Wilder,  for  450.00;  Exch.,  50c.  No.  630,  favor 
Byron  Day,  for  117.92;  Exch.,  25c. 

Sent  the  following  paper,  received  during  the  day,  to  Chemical  National  Bank,  for  our  credit: 
No.  3043,  First  National,  Fort  Scott,  on  Park  Bank,  1450.00;  No.  1682,  Traders'  National,  Oakland,  on 
Ninth  National,  1942.16;  No.  1142,  Third  National,  Bancroft,  on  Metropolitan,  234.91;  No.  877,  Ex- 
change Bank,  Mt.  Morris,  on  Bowery,  116.27;  Miners'  Bank,  Coalburg,  No.  229,  on  Ciiemical,  386.34. 

Eeceived  the  following  deposits:  Johnson  Mfg.  Co.,  3118.56;  D.  J.  Slocum,  376.18;  Lord  &  Bennett, 
1750.00;  J.  n.  Wentworth  &  Co.,  945.23;  T.  J.  &  W.  E.  Upton,  2115.00;  Maxwell  Day,  1846.75;  Chas. 
J.  Burke,  3500.00.     {B.  L.    See  6,  page  199.) 

Paid  the  following  checks:  Samuel  Wilder,  450.00,  211.92,  1500.00;  Jas.  Angle,  397.84,  500.00, 
673.60;  Bingham,  Field  &  Ward,  6000.00;  Stillman  &  Moore,  725.00,  1293.20,  65.00;  Lord  &  Bennett, 
93.42,  846.18;  Johnson  Mfg.  Co.,  4500.00;  W.  F.  Jameson,  12000.00;  L.  W.  Perry  {T.  A.),  364.37; 
Dunn  &  Cole  {T.  A.),  863.00.     {B.  L.    See  3  and  4,  liage  199.) 

Collection  &  Exchange,  from  Teller's  Memorandum,  7.92. 

Rule  and  foot  the  Discount  Eegister,  as  heretofore,  and  post  as  instructed  in  7  and  18,  page  199. 
Write  the  letter  D  against  the  amounts  from  the  Discount  Eegister,  in  the  "  Deposits"  column,  B.  L., 
to  distinguish  them  from  the  other  credits.  Extend,  foot  and  prove  the  Balance  Ledger,  as  instructed 
9-18,  page  199;  then  foot  and  rule  the  other  books  as  heretofore;  after  which  post  the  Journal. 

JUNE   25,  18—. 
Certified  Ray  Bros,  check  for  1500.00. 

Note. — The  teller  certifies  a  check  presented  for  certification,  provided  the  maker's  account  is  good  for  the  amount, 
and  places  a  slip  memorandum  on  a  spindle,  giving  the  name  of  the  maker  and  tlie  amount  of  the  check.  Tlie  book-keeper 
debits  the  depositor  for  such  check  from  this  slip,  and  credits  Certified  Checks  account.  In  posting,  it  will  be  necessary 
to  open  an  account  with  Certified  Checks  in  the  Balance  Ledger;  see  page  200.  Debit  Certified  Checks  when  a  certified 
check  is  paid  ("  Checks  in  Detail"  column,  B.  L.). 

Certificate  of  Deposit  No.  703  has  been  paid. 

Eeceived  the  following  paper,  from  the  banks  named,  for  collection:  From  Ninth  National,  New 
York,  A.  S.  Barnes  &  Co.'s  sight  draft  on  Meyer  &  Kauffman,  dated  22d,  for  681.23.  Accepted  by 
Meyer  &  Kauffman  and  placed  among  the  checks.  Remitted  Ninth  National  draft  No.  631,  on  Chemi- 
cal National,  for  680.98.     Collection,  25c. 


THEORETICAL    AND    PRACTICAL    BOOK-KEEPING.  177 

From  Norwich  National,  Avery  Childs'  check  on  Union  Bank,  City,  dated  a4th,  for  318  75. 
Collected. 

From  Fanners',  Canton,  Harvey  Miller's  sight  draft  on  James  Clark  &  Son,  dated  33d,  for  464.33. 
Collected. 

Prom  Exchange  National,  Bristol,  Lewis  Jenkins'  note,  indorsed  by  Hiram  Bennett,  i)ayable  at 
Union  Bank,  City,  for  931.83,  at  30  days  from  May  3.5th. 

From  Manufacturers'  Bank,  Norwalk,  E.  L.  Mason's  note,  indorsed  by  Wm.  Phillips,  payable  at 
our  bank,  for  1350.00,  at  90  days  from  March  38th. 

Tlie  following  sight  paper,  received  on  deposit,  lias  been  sent  to  the  banks  named  for  collection 
and  credit:  Samuel  Wilder's  sight  draft  on  Wellman  &  Co.,  Canton,  dated  to-day,  for  336.43;  sent 
Farmers',  Canton.  Horace  Maynard's  check  on  First  National  Bank,  Bath,  dated  33d,  indorsed  by 
Stillnian  &  Moore,  for  311.75;  sent  to  Geo.  K.  Warren  &  Co.  Eay  Brothers'  sight  draft  on  Hill  &  Co., 
Rockford,  dated  to-day,  for  147.30;  sent  to  First  National,  Rockford. 

Received  the  following  paper,  payable  abroad,  for  collection :  From  T.  J.  &  W.  E.  Upton,  Pomeroy 
&  Wolcott's  note,  at  30  days  from  May  30th,  for  650.00,  jwiyable  at  National  Park  Bank,  New  York; 
senj;  Chemical  National.  From  J.  H.  Wentworth  &  Co.,  King  &  Griffith's  note,  at  60  days  from  May 
33d,  for  871.45,  payable  at  Second  National,  Lyons;  sent  Wayne  County  National,  From  D.  J.  Pease, 
S.  B.  Bryan's  note,  at  90  days  from  A\)n\  11th,  for  378.75,  payable  at  First  National,  Newport;  sent 
Third  National,  Newport. 

Received  the  following  drafts,  from  the  banks  named,  on  account:  No.  961,  Exchange  National, 
Bristol,  on  Broadway  Bank,  for  5330.00;  No.  3301,  Geo.  K.  Warren  &  Co.,  Bath,  on  Union  Trust  Co., 
for  1375.00;  No.  487,  Third  National,  Newport,  on  "Bowery  Bank,  for  3915.00. 

Received  draft  No.  3143,  on  National  Park  Bank,  New  York,  from  First  National,  Chester,  for 
proceeds  of  (collection  No.  918.     Amount  of  draft,  94.37. 

Enter  draft  in  N.  Y.  D.  R.  with  others  at  the  close  of  business.  Credit  David  Gray,  under  "Transient  Accounts," 
94.25  (B.  L.);  Coll.  &  Exch.,  12c.  (J.) 

Charged  collection  No.  835  to  Chemical  National,  in  N.  Y.  1).  R.,  at  its  face,  and  credited  W.  F. 
Jameson  for  the  amount,  less  50c.  collection. 

Received  advice  from  Wayne  Co.  National  that  collection  No.  836  has  been  paid  and  credited. 

Credit  R.  L.  Mason  for  tlie  amount,  less  25c.  collection. 

Collection  No.  886,  payable  at  our  bank,  and  which  was  made  by  one  of  our  depositors,  has  been 
placed  among  the  checks. 

Received  from  Second  National,  Palmyra,  their  draft  No.  1873,  on  Bowery  Bank,  for  1799.50,  i)ro- 
ceeds  of  Discount  No.  497. 

Received  advice  from  Third  National,  Newport,  that  Discount  No.  499  has  been  paid. 

Discount  No.  503  has  been  paid. 

Discounted  the  following  paper:  For  J.  H.  Wentworth  &  Co.,  L.  W.  Gage's  note  for  500.00,  at  15 
days  from  date,  payable  at  Second  National  Lyons.     Discount,  1.50;  Coll.,  50c.;  Exch.,  63c. 

For  Maxwell  Day,  Payne  &  Harris'  note  for  1630.00,  at  10  days  from  tlie  34th  inst.,  payable  at 
Union  Bank,  City.     Discount,  3.34. 

For  Henry  L.  Fish,  his  note  for  450.00,  indorsed  by  H.  Sibley,  at  30  days  from  the  34th  inst, 
payable  at  our  bank.     Discount,  1.65.     Proceeds  paid  in  cash. 

Enter  this  note  in  D.  R. ,  same  as  you  did  similar  ones  heretofore,  only  do  not  check  it,  and  credit ' '  Cashier  Account," 
bi  "Deposits  "  colimin,  B,  L.,  at  the  close  of  the  day. 

Drew  the  following  drafts  on  Chemical  National  Bank:  No.  631,  favor  Ninth  National  Bank,  for 
680.98;  Exch.,  35c.  No.  633,  favor  Chas.  J.  Burke,  for  900.00;  Exch.,  1.13.  No.  633,  favor  T.  J.  & 
W.  E.  Upton,  for  1300.00;  Exch.,  1.50.  No.  634,  favor  Lord  &  Bennett,  for  1318.09;  Exch.,  1.65. 
No.  635,  favor  L.  J.  Famsworth,  for  4350.00;  Exch.,  5.31.  No.  636,  favor  Maxwell  Day,  for  93.18; 
Exch.,  15c. 

Remitted  the  following  drafts  on  New  York  to  Chemical  National,  for  our  credit:  No.  961, 
Exchange  National  Bank,  Bristol,  on  Broadway  Bank,  5330.00;  No.  3301,  Geo.  K.  Warren  &  Co.'s 
Bank,  Bath,  on  Union  Trust  Co.,  1375.00;  No.  487,  Third  National  Bank,  Newport,  on  Bowery  Bank, 
3915.00;  No.  3143,  First  National  Bank,  Chester,  on  National  Park  Bank,  94.37;  No.  1873,  Second 
National  Bank,  Palmyra,  on  Bowery  Bank,  1799.50;  No.  3344,  Chapin's  Bank,  Newark,  on  Metropoli- 
tan, 693.84;  No.  7403,  Fourth  National  Bank,  Monroe,  on  Ninth  National,  5000.00;  No.  973,  Hamilton 
&  Co.'s  Bank,  Livonia,  on  Chemical,  344.73. 


178  THEORETICAL    AND   PEACTICAL   BOOKKEEPING. 

Received  the  following  deposits:  Samuel  Wilder,  3341.18;  W.  F.  Jameson,  5163.93;  Stillman  & 
Moore,  846.38,  Ray  Brothers,  1191.71;  Meyer  &  Kauffman,  450.00;  Johnson  Mfg.  Co.,  3360.00;  Max- 
well Day,  1500.00;  J.  H.  Went  worth  &  Co.,  761.50.     {See  5,  page  199.) 

Paid  the  following  checks:  Benj.  Thomas  &  Son,  10000.00;  Chas.  J.  Burke,  1941.83,  3463.71, 
900.C0;  S.  II.  Lowe  (7".  A.),  918.30;  T.  J.  &  W.  E.  Upton,  1639.73,  1300.00,  383.61;  Lord  &  Bennett, 
693.30,  1318.09,  L.  J.  Parnsworth,  4350.00,  1153.37;  Meyer  &  Kauffman,  681.33;  Maxwell  Day,  835.00, 
113.50,  93.18:  Jas.  Angle,  1400.00;  Thos.  H.  Wilson,  300.00;  Ray  Bros.,  1500.00;  Cashier,  448.35. 
{See  3  and  4,  page  199.) 

Collecbion  and  Exchange,  from  Teller's  Memorandum,  16.85. 

Add,  rule  and  post,  as  directed  on  page  176. 

JUNE    26,   18—. 

Received  the  following  paper,  from  the  Ijanks  named,  for  collection : 

From  First  National,  Rockford,  Garrett,  Wilson  &  Co.'s  sight  draft  on  Thos.  H.  Wilson,  dated  35th 
inst.,  for  517.35.  The  drawee  accepts  it  upon  presentation,  payable  at  our  bank,  and  we  place  it 
among  the  checks. 

From  National  Exchange  Bank,  Warsaw,  H.  A.  Strong's  check  on  Union,  City,  dated  34th,  for 
643.50.     Collected,  and  remitted  draft  No.  637,  on  Chemical,  for  643.10.     Collection,  40c.     (C.  R.) 

From  Traders'  National,  Kingston,  F.  J.  Hinman's  sight  draft  on  E.  T.  Woodford,  City,  dated 
35th,  for  17.03.     Collected.  . 

The  following  sight  jiaper,  received  on  deposit,  has  been  sent  forward  for  collection  and  credit 
R.  L.  Mason's  sight  draft  on  P.  W.  Leach,  LyoHS,  dated  to-day,  for  63.18.  T.  J.  &  AV.  E.  Upton's 
sight  draft  on  Henry  D.  Warren,  Bristol,  dated  35th  inst.,  for  143.37.  Clark  &  Hoadley's  check  on 
Second  National,  Bath,  dated  34th  inst.,  for  587.61,  and  indorsed  by  Jas.  Angle.  R.  L.  Mason's  sight 
draft  on  Benton  &  Ward,  Lebanon,  dated  to-day,  for  1643.18.  Sent  to  First  I^ational    Lebanon. 

Received  the  following  paper,  payable  abroad,  for  collection:  From  Maxwell  Day,  Bellows  &  Co.'s 
note,  for  375.00,  at  3  months  from  April  3d,  payable  at  First  National,  Lyons,  with  interest.  From 
Johnson  Mfg.  ('o.,  P.  L.  Sill's  note,  for  1300.00,  at  3  months  from  May  4th,  payable  at  First  National, 
Rockford,  with  interest.  From  Samuel  Wilder,  Alex.  Weaver's  accepted  draft,  at  10  days  from  33d 
inst.,  for  43.12,  j^ayable  at  First  National  Bank,  Canton,  and  indorsed  by  Byron  Hill. 

Received  advice  that  Collection  No.  938  has  been  paid.     Collection,  50c. 

Discount  No.  504  has  been  charged  to  the  account  of  the  makers. 

Certified  Chas.  J.  Burke's  check  for  1000.00.    {Cr.  Cerhfied  Checks  tii  B.  L.) 

Ray  Brothers'  check,  certified  by  us  on  the  35th,  has  been  paid.     {See  note  on  2}age  176.) 

Issued  Certificate  of  Deposit  No.  704  to  Wm.  P.  Simpson,  for  1500.00. 

Discounted  the  following  paper:  For  Thos.  H.  Wilson,  his  note,  dated  to-day,  indorsed  by  Walker 
&  Eaton,  payable  at  our  bank  10  days  from  date,  for  1000.00. 

For  A¥.  F.  Jameson,  Barry  &  Co.'s  note,  at  40  days  from  13th  inst.,  for  3683.40,  payable  at  First 
National,  Lyons.     Colh,  2.00;  Exch.,  3.35. 

For  R.  L.  Mason,  his  note,  indorsed  by  F.  R.  Sickles  and  N.  M.  French,  at  30  days  from  the  8th , 
for  3500.00,  payable  at  our  bank. 

For  B.  J.  Blake,  his  note  at  15  days  from  date,  indorsed  by  J.  D.  Cox,  payable  at  our  bank,  for 
1800.00.     Proceeds  paid  in  cash. 

For  Benj.  Tliomas  &  Son,  Horace  Bly's  note  for  943.18,  at  10  days  from  33d,  payable  at  First 
National,  Canton.     Coll.,  50c.;  Exch.,  1.18. 

Drew  the  following  drafts  on  Chemical  National  Bank:  No.  637,  favor  National  Exchange  Bank, 
Warsaw,  642.10;  Excli.,  40c.  No.  638,  favor  B.  H.  Clark,  450.00;  Exch.,  50c.  No.  639,  favor  Johnson 
Mfg.  Co.,  1500.00;  Exch.,  1.88.  No.  640,  favor  T.  J.  &  W.  E.  Upton,  379.40;  Exch.,  50c.  No.  641, 
favor  Maxwell  Day,  633.13;  Exch.,  75c.     No.  643,  favor  Ray  Bros.,  313.96;  Exch.,  50c. 

Remitted  the  following  drafts  on  New  York,  received  during  the  day,  to  Chemical  National  Bank: 
No.  613,  drawn  by  Third  National  of  Covington,  on  Ninth  National,  for  713.43;  No.  1046,  drawn  by 
Exchange  National  of  Norwich,  on  Broadway,  for  1011.76;  No.  4639,  drawn  by  Merchants'  National  of 
.Harwood,  on  Bowery,  for  13.14;  No.  146,  drawn  by  Union  National  of  Greenville,  on  Chemical,  for 
319.35;  No.  13344,  drawn  by  Cascade  Bank,  Portage,  on  Sixth  National,  for  1320.00. 


THEOKETICAL    AND    PRACTICAL    BOOK-KEEPING.  179 

Received  the  following  deposits:  T.  J.  &  W.  E.  Upton,  1843.19;  11.  L.  Mason,  2876.75;  D.  J. 
Slocum,  983.20;  Jas.  Angle,  1171.55;  L.  J.  Farnsworth,  550.00;  Johnson  Mfg.  Co.,  4325.00;  Wm. 
Raymond,  1000;  Benj.  Thomas  &  Son,  628.00;  Thos.  H.  Wilson,  652.75. 

Paid  the  following  checks:  Johnson  Mfg.  Co.,  1500.00,  1074.83,  300.00;  Chas.  J.  Burke,  603.42, 
2500.00,  1000.00;  T.  J.  &  W.  E.  Upton,  83.79,  279.40,  500.00;  Meyer  &  Kauffman,  1200.00,  4500.00; 
Maxwell  Day,  622.12,  1741.96;  Ray  Bros.,  160.00,  286.80,  212.96;  Bingham,  Field  &  Ward,  3000.00; 
Thos.  H.  Wilson,  517.35. ;    Cashier,  1794.60. 

Collection  and  Exchange,  from  Teller's  Memorandum,  21.65. 

JUNE    27,   18—. 

Received  the  following  paper,  from  the  ))auks  named,  for  collection: 

From  W^ayne  County  National,  C.  J.  Burke's  check  on  our  bank,  dated  24th,  favor  Lewis  &  Co., 
for  675.00. 

From  American  Exchange  Bank,  New  York,  H.  B.  Claflin  &  Co.'s  sight  draft,  dated  25th,  on  T.  J. 
&  W.  E.  Upton,  for  526.83.  Accepted  by  drawee  upon  presentation.  Remitted  American  Exchange 
Bank  our  draft.  No.  643,  on  Chemical  Bank,  for  the  face  of  the  Collection,  less  33c.  collection. 

From  Farmers',  Canton,  Wood,  Winslow  &  Co.'s  sight  draft,  dated  24th,  on  Jas.  McMahon,  City, 
for  34.47.     Paid. 

From  Commercial  Bank,  Frankfort,  Wm.  King  &  Co.'s  note,  at  3  montlis  from  April  19th,  favor 
John  Young,  payable  at  our  bank,  for  114.50,  with  interest. 

The  following  sight  paper,  received  on  deposit,  has  been  sent  forward  for  collection  and  credit: 
H.  S.  Ball's  check,  dated  22d  inst.,  on  Exchange  Bank,  Lyons,  for  136.25.  AV.  P.  Reed's  check,  dated 
20th  mst.,  on  Third  National  Bank,  Newj)ort,  for  19.42.  R.  L.  Mason's  sight  draft,  dated  to-day,  on 
Walker  &  Davis,  Bristol,  for  291.20.  Johnson  Mfg.  Co.'s  sight  draft,  dated  to-day,  on  James  Turner, 
Bath,  for  644.05. 

Received  the  following  paper,  payable  abroad,  for  collection :  From  W.  F.  Jameson,  note  of  L.  J. 
Weaver,  at  2  months  from  May  21st,  for  350.00,  with  interest,  payable  at  First  National  Bank,  Lyons. 
From  Johnson  Mfg.  Co.,  draft,  at  10  days  from  date,  for  372.41,  on  Daniel  Bates  &  Co.,  Jefferson; 
sent  First  National  Bank,  Jefferson.  From  II.  L.  Smith,  his  sight  draft,  dated  to-day,  on  E.  H.  San- 
derson, Warsaw,  for  27.70;  sent  Second  National  Bank,  Warsaw. 

Collections  Nos.  887,  921  and  932,  payable  in  the  city,  have  been  paid.  Remitted  Wisner  &  Clark's 
Bank,  draft  No.  649,  on  Chemical,  for  Collection  No.  887,  less  25c.  collection. 

Received  advice  from  First  National,  Rockford,  that  collection  No.  838  has  been  paid.     Coll.,  50c. 

Discounts  Nos.  507,  508  and  540  have  been  placed  among  the  checks  and  charged  to  the  accounts 
of  the  makers.     {See  list  of  checks,  below.)  ^ 

Received  advice  that  Discount  No.  502  has  been  paid. 

Discounted  the  following  paper:  For  Ray  Bros.,  Darwin  Cook's  note,  for  320.00,  at  10  days  from 
date,  payable  at  Union  Bank,  City. 

For  Meyer  &  Kauffman,  L.  M.  Holman's  note,  for  1750.00,  at  15  days  from  date,  payable  at 
Exchange  Bank,  City. 

For  W.  F.  Jameson,  Howard  Hart's  note,  for  5000.00,  at  30  days  from  3rd  inst.,  payable  at  Wayne 
County  National  Bank.     Coll.,  5.00;  Exch.,  6.25. 

Drew  the  following  drafts  on  Chemical  Bank :  No.  643,  favor  American  Exchange  Bank,  New 
York,  526.50;  Exch.,  33c.  No.  644,  favor  C.  J.  Burke,  1762.90;  Exch.,  2.20.  No.  645,  favor  R.  L. 
Mason,  500.00;  Exch.,  63c.  No.  646,  favor  Johnson  Mfg.  Co.,  2845.00;  Exch.,  3.56.  No.  647,  favor 
Maxwell  Day,  92.65;  Exch.,  25c.  No.  648,  favor  L.  W.  Manning,  161.00;  Exch.,  50c.  No.  649,  favor 
Wisner  &  Clark's  Bank,  374.75;  Exch.,  25c. 

Remitted  the  following  drafts  on  New  York,  received  during  the  day,  to  Chemical  Bank:  No. 
10042,  drawn  by  First  National,  Georgetown,  on  Shoe  and  Leather,  218.41;  No.  1683,  drawn  by  Brown's 
Bank,  Ottawa,  on  Bowery,  1423.55;  No.  7306,  drawn  by  Third  National,  Newport,  on  Bowery,  949.83; 
No.  867,  drawn  by  Clark's  Bank,  Natchez,  on  Ninth  National,  110.00;  No.  14061,  drawn  by  First 
National,  Hastmgs,  on  Chemical,  3681.75. 


180 


TIIEOKE-IICAL    AND    PRACTICAL    BOOK-KEEPING. 


Eeceivcd  tlie  following  ileirosits:  Johnson  Mfg.  Co.,  1900.00;  Maxwell  Day,  575.00;  C.  J.  Burke, 
2260.00;  E.  L.  Mason,  843.25;  AV.  F.  Jameson,  710.00;  Meyer  &  Kauifman,  1500.00;  Thos.  H.  Wilson, 
1486.70;  Bingham,  Field  &  Ward,  4831.15. 

Paid  the  following  checks:  T.  J.  &  W.  E.  Upton,  1291.22,  75.00,  526.83;  Johnson  Mfg.  Co., 
1000.00,  86.40,  175.00;  Jas.  Angle,  '1250.00,  63.84,  211.61;  Benj.  Thomas  &  Son,  2000.00;  D.  J. 
Slocum,  941.09,  750.00;  Maxwell  Day,  5000.00,  1256.88;  Bingham,  F.  &  W.,  3750.00;  Wm.  Raymond, 
1450.00;' Chas.  J.  Burke,  675.00. 

Collection  and  Exchange,  from  Teller's  Memorandum,  17.20. 

JUNE    28,    18—. 

Received  the  following  \)npoT,  from  the  banks  named,  for  collection: 

From  Smith  &  Walker's  Bank,  Salem,  J.  W.  Lewis'  sight  draft,  dated  25th,  on  L.  11.  Parker,  for 
168.16.     Collected.     Remitted  draft  No.  650,  on  Chemical  Bank,  for  the  amount,  less  12c.  collection. 

From  Exchange  National,  Bristol,  Chas.  J.  Burke's  check,  dated  24th  inst.,  favor  Henry  Wood, 
for  365.00;  and  Bardwell  &  Green's  sight  draft,  dated  27tli  inst.,  on  BenJ.  Simpson,  for"  217.15. 
Collected. 

From  Farmers',  Canton,  John  Mead's  sight  draft,  dated  26th  inst.,  on  Wm.  Raymond,  for  619.05. 
Accejited,  payable  at  our  bank. 

The  following  sight  ])a])er,  received  on  deposit,  has  been  sent  forward  for  ev^Ilection  and  credit: 
W.  F.  Manning's  check,  dated  24th  inst.,  on  Second  National,  Rockford,  favor  J.  B.  Glass,  for  369.44. 
Chas.  J.  Burke's  sight  draft  on  D.  W.  Buckley,  Lyons,  for  1642.18.  Johnson  Mfg.  Co.'s  sight  draft 
on  M.  S.  Little  &  Co.,  Bath,  for  993.72. 

Received  the  following  paper,  payable  abroad,  for  collection:  From  D.  B.  Clark,  Lansing  Wetmore's 
note,  at  3  months  from  April  6th,  for  500.00,  with  interest,  payable  at  First  National,  Lyons.  From 
R.  L.  Mason,  Julius  Townsend's  note,  at  2  months  from  May  9th,  for  163.50,  with  interest,  payable  at 
Ninth  National,  New  York.  From  Jas.  Angle,  his  draft,  at  10  days  from  date,  on  Willard  Hodges, 
Belleville,  for  300.00. 

Received  advice  from  Norwich  National,  that  Collection  No.  859  has  been  ])aid.    Coll.  &  Exch.,  1.00. 

Discount  No.  509  has  been  paid. 

Received  from  First  National,  Auburn,  their  draft  No.  1794,  on  Fifth  National,  New  York,  for  the 
proceeds  of  Discount  No.  505.     Face  of  draft,  3877.43. 

Discounted  the  following  paper:  For  Geo.  W.  Holmes,  Brown  &  Co.'s  note,  indorsed  by  Hiram 
Sibley,  at  10  days  from  date,  for  750.00,  payq,ble  at  Union  Bank,  City.  Discount,  1.63.  Proceeds 
paid  in  cash. 

For  W.  F.  Jameson,  Peter  Waterman's  note,  at  12  days  from  25th  inst.,  for  3750.00,  payable  at 
Exchange  Bank,  Lyons.     Discount,  7.50;  Coll.,  3.00;  Exch.,  4.69. 

For  Johnson  Mfg.  Co.,  Wilson  &  Barry's  note,  at  45  days  from  May  24th,  for  2461.90,  payable  at 
Third  National,  Rockford.     Discount,  4.10;  Coll.,  2.00;  Exch.,  3.08. 

Drew  the  following  drafts  on  Chemical  Bank:  No.  650,  favor  Smith  &  Walker's  Bank,  Salem, 
168.04;  Exch.,  12c.  No.  651,  favor  C.  J.  Burke,  1823.19;  Exch.,  2.28.  No.  652,  favor  L.  P.  Walters, 
375.00;  Exch.,  50c.  No.  653,  favor  Johnson  Mfg.  Co.,  5000.00;  Exch.,  6.25.  No.  654,  favor  R.  L. 
Mason,  1475;  Exch.,  1.84. 

Remitted  the  following  drafts  on  New  York  to  Chemical  Bank,  for  our  credit:  No.  914,  drawn  by 
First  National  Bank,  Peru,  on  Bowery,  692.40;  No.  3027,  drawn  by  Livingston's,  Corning,  on  American 
Exchange,  1945.00;  No.  1346,  drawn  by  Cook's  Bank,  Havana,  on  Metropolitan,  4921.16;  No.  14064, 
drawn  by  First  National,  Albion,  on  Broadway,  1200.00;  No.  871,  drawn  by  Warner's  Bank,  Holley,  on 
Third  National,  750.00;  No.  1795,  drawn  by  First  National,  Auburn,  on  Fifth  National,  3877.43. 

Received  the  following  deposits:  T.  J.  &  W.  E.  Upton,  1800.00;  Benj.  Thomas  &  Son,  1394.20; 
Johnson  Mfg.  Co.,  3500.00;  D.  J.  Slocum,  891.14;  Bingham,  Field  &  Ward,  1640.72;  Maxwell  Day, 
4000.00;  L.  J.  Farnsworth,  174.80;  Chas.  J.  Burke,  2187.55. 


THEORETICAL    AND    PRACTICAL    SOOK-KEEPING.  ISl 

Paid  the  following  checks:    Johnson  Mfg.  Co.,  162.35,  794.18,  1500.00;  L.  J.  Farnsworth,  563.82; 

C.  J.  Burke,  675.00,  183.71,  2000.00,  365.00;  Meyer  &  Kauffman,  1628.50,  445.00;  K.  L.  Mason,  942.61; 
W.  F.  Jameson,  500.00,  63.44;  Thos.  H.  Wilson,  2463.21,  185.00,  50.00;  Wm.  Raymond,  619.05. 
Cashier,  748.37. 

Collection  and  Exchange,  from  Teller's  Memorandum,  84.65. 

JUNE    29,  18—. 

Received  from  Livingston's  Bank,  Corning,  drafts  Nos.  4131  and  4122,  on  American  Exchange,  for 
amount  due  on  collections  Nos.  877  and  903,  less  25c.  collection  on  each.  Also,  from  Exchange  Bank, 
Geneva,  draft  No.  1105,  on  First  National,  New  York,  for  amount  of  collection  No.  905,  23.83,  less 
13c.  collection. 

Received  the  following  paper,  from  the  banks  named,  for  collection :    From  Wayne  County  National, 

D.  W.  Hatch  &  Son's  sight  draft  on  T.  J.  &  W.  E.  Upton,  dated  28th  inst.,  for  293.41;  accepted.  From 
Farmers',  Canton,  Maxwell  Day's  check  on  our  bank,  dated  25th  inst.,  favor  H.  S.  Jones,  for  476.62. 
From  Wheeler's  Bank,  Livonia,  Chas.  J.  Burke's  note,  at  6  months  from  January  5th,  favor  Henry 
Damon,  payable  at  our  bank,  for  5000.00.  From  Geo.  K.  Warren  &  Co.,  Loren  Simj)son's  sight  draft 
on  Ward  &  Davis,  dated  37th  inst.,  for  609.30;  paid. 

The  following  sight  paper,  received  on  deposit,  has  been  sent  forward  for  collection  and  credit: 
Carroll  &  Son's  check  on  First  National  Bank,  Bath,  favor  Johnson  Mfg.  Co.,  for  648.11.  Meyer  & 
Kauffnian's  sight  draft  on  H.  S.  Lawrence,  Rockford,  for  34.18.  Wm.  Raymond's  sight  draft  on  Noble 
&  Savage,  Lyons,  for  563.64.     Homer  Baldwin's  sight  draft  on  King  &  Boyd,  Bristol,  for  439.75. 

Received  the  following  paper,  payable  abroad,  for  collection :  From  W.  F.  Jameson,  Hiram  Short's 
note,  at  30  days  from  Juno  13th,  payable  at  First  National,  Lyons,  for  575.35.  From  Maxwell  Day,  his 
sight  draft  on  Ranney  &  Co.,  Belmont,  for  133.91.  From  Johnson  Mfg.  Co.,  their  sight  draft  on  Perry 
Mead,  New  York,  for  747.42. 

Collections  Nos.  840,  841  and  933,  payable  in  the  city,  have  been  paid. 

Remitted  our  draft  No.  660,  on  Cliemical  Bank,  to  Manufacturers'  Bank,  Norwalk,  for  collection 
No.  933,  less  1.28  for  collection. 

Discounts  Nos.  511,  513  and  530,  payable  in  the  city,  have  been  paid. 

Received  advice  from  Farmers',  Canton,  that  Discount  No.  506  has  been  paid. 

Discounted  the  following  paper:  For  C.  J.  Burke,  H.  S.  Day's  note,  at  10  days  from  38th  inst., 
payable  at  Union  Bank,  City,  for  3250.00.     Discount,  6.50. 

For  Maxwell  Day,  Slocum  &  Heald's  note,  at  15  days  from  date,  payable  at  Exchange  Bank,  City, 
for  1846.92.     Discount,  5.54. 

For  Johnson  Mfg.  Co.,  Hoadley  &  Cain's  note,  at  30  days  from  26th  inst.,  payable  at  First  National, 
Bath,  for  4825.00.     Discount,  24.13;  Coll.,  4.00;  Exch.,  6.03. 

For  L.  J.  Farnsworth,  Mulligan  &  Foley's  note,  at  60  days  from  May  35th,  payable  at  First  National, 
Canton,  for  1286.16.     Discount,  6.00;  Coll.,  1.00;  Exch.,  1.61. 

Drew  the  following  drafts  on  Chemical  National  Bank:  No.  655,  favor  Johnson  Mfg.  Co.,  1000.00; 
Exch.,  1.35.  No.  656,  favor  LeRoy  Brown,  843.43;  Exch.,  1.05.  No.  657,  favor  W.  F.  Jameson, 
938.61;  Exch.,  1.16.  No.  658,  favor  Chas.  Cook,  31.19;  Exch.,  15c.  No.  659,  favor  R.  L.  Mason, 
325.00;  Exch.,  50c.     No.  660,  favor  Manufacturers'  Bank,  Norwalk,  1248.72;  Exch.,  1.28. 

Remitted  the  following  drafts  on  New  York  to  Chemical  Bank,  for  our  credit:  Nos.  4121  and 
4122,  drawn  by  Livingston's,  Corning,  on  American  Exchange,  for  381.75  and  275.25;  No.  1105,  drawn 
by  Exchange,  Geneva,  on  First  National,  for  23.69;  No.  8303,  drawn  by  First  National,  Homer,  on 
Metropolitan,  for  116.92;  No.  1226,  drawn  by  Clark's  Bank,  Benton,  on  Bowery,  for  1048.62;  No.  3491, 
drawn  by  First  National,  Millport,  on  National  Park,  for  2689. 70. 

Received  the  following  deposits:  Johnson  Mfg.  Co.,  4943.11;  W.  F.  Jameson,  660.00;  Meyer  & 
Kauffman,  1043.20;  Thos.  H.  Wilson,  3581.10;  Wm.  Raymond,  1500.00;  Bingham,  Field  &  Ward, 
4000.00;  Chas.  J.  Burke,  651.71. 


182 


THEORETICAL    AND    PRACTICAL    BOOK-KEEPING. 


Paid  the  following  checks:  L.  J.  Farnsworth,  84.16,  327.93;  Chas.  J.  Burke,  1500.00;  Johnson 
Mfg.  Co.,  189G.17,  500.00,  118.50;  Maxwell  Day,  476.G2,  69.35;  D.  J.  Slociim,  032.56,  85.00;  Bingham, 
Field  &  Ward,  1000.00;  T.  J.  &  W.  E.  Upton,  100.00,  83.50,  1220.00,  293.41;  R.  L.  Mason,  1350.00; 
David  Gray  {T.  A.),  94.25;  Benj.  Thomas  &  Son,  750.00,  845.06,  430.00.   {See  11,  page  199.) 

Remitted  National  Park  Bank,  currency,  50000.00. 

Paid  Salaries  for  the  month,  as  follows:  Oashier,  200.00;  Teller,  150.00;  Bookkeeper,  100.00; 
Assistant  Bookkeepers,  75.00,  50.00;  Messenger,  25.00;  Janitor,  25.00. 

Collection  and  Exchange,  from  Teller's  Memorandum,  26.20. 

After  posting  the  work  of  this  day,  you  will  take  a  trial  balance  of  the  General  Ledger,  and  also 
ascertain  whether  tlie  footing  of  the  "  Balance"  column  in  the  Balance  Ledger  for  this  day  (deducting 
overdrafts,  as  explained  in  15,  page  199)  corresponds  with  the  difference  between  the  sides  of  the 
Deposits  account  in  the  General  Ledger.  In  addition  to  the  trial  balance  mentioned,  a  statement  of 
the  condition  of  the  bank  should  be  made  from  your  books,  which  should  agree  with  the  following: 


STATEMENT  OF  SECOND   NATIONAL  BANK, 

AT    CLOSE    OF    BUSINESS,    SATURDAY,    JUNE    29,    18- 


Cash, 

84083 

25 

Capital  Stock, 

200000 

United  States  Bonds, 

100000 

Circulation, 

90000 

Real  Estate, 

24500 

Discount, 

6794 

32 

Furniture  and  Fixtures, 

2500 

Collection  and  Exchange, 

2664 

38 

Expense, 

3320 

37 

Surplus  Fund, 

31750 

63 

Loans  and  Discounts, 

163105 

90 

Undivided  Profits, 

5718 

42 

Redemption  Fund, 

4500 

Due  Depositors, 

235806 

39 

Due  from  other  Banks, 

191199 

48 

Due  Traders'  National,  Kingston, 

474 

86 

National  Park  Bank,  N.  Y., 

76523.85 

, 

Chemical  National,  N.  Y., 

84280.29 

X 

Wayne  Co.  National,  Lyons, 

9177.83 

X 

Geo.  K.  Warren  &  Co.,  bath. 

2817.98 

y 

First  National,  Rockford, 

3027.80 

y/ 

Norwich  National,  Norwich, 

1426.20 

X 

Farmers',  Canton, 

4574.05 

/ 

Third  National,  Newport, 

6353.36 

X 

Exchange  National,  Bristol, 

1375.94 

X 

First  National,  Lebanon, 

1642.18 

/ 

573209 

573209 

You  will  next  close  all  accounts  exhibiting  gains  and  losses  into  the  Loss  and  Gain  account,  except 
Real  Estate  and  Furniture  and  Fixtures,  which  are  inventoried  at  cost. 

The  net  profit  in  a  business  conducted  by  a  corporation  is  of  course  the  property  of  the  stock- 
holders; but  the  laws  governing  National  Banks  require  that  ten  per  cent,  of  the  profits  shall  be 
carried  to  the  Surplus  Fund,  till  such  fund  shall  amount  to  twenty  per  cent,  of  the  capital  stock  of 
the  bank.  And  it  is  usual  to  divide  such  a  part  of  the  remainder  as  will  make  an  even  per  cent,  upon 
the  amount  of  the  capital  stock,  making  tlie  per  cent,  large  enough  to  nearly  consume  the  amount  of 
jn-ofit,  and  carrying  the  balance  to  the  credit  of  Undivided  Profits  account.  Such  amount  to  be 
divided  among  the  stockholders  is  called  a  Dividend.  Each  stockholder  receives  such  a  share  of  the 
dividend  as  his  stock  is  of  the  entire  capital  stock. 

Yon  will  therefore,  as  illustrated  below,  close  the  Loss  and  Gain  account  into  Suri^lus  Fund 
account.  Dividend  account  and  Undivided  Profits  account,  by  a  Journal  enti-y,  crediting  Surplus 
Fund  account  613  83,  and  Dividend  account  5000.00,  which  will  amount  to  2^  per  cent,  upon  the 
capital  stock,  and  crediting  Undivided  Profits  account  for  524.50,  the  remainder  of  the  net  profit,  as 
shown  by  the  balance  of  Loss  and  Gain  account. 


THEORETICAL    AND    PRACrlCAL    BOOK-KEEPING. 


183 


Tlie  following  table  contains  the  names  of  stockholders  and  the  amount  of  their  stock; 


Chas.  J.  Burke, 

300  shares  of  100.00  each. 

30000.00. 

W.  F.  Jameson, 

250 

100.00 

25000.00 

R.  L.  Mason, 

250 

100.00 

25000.00 

D.  J.  Slocum, 

200 

100.00 

20000.00. 

Jas.  Angle, 

200         ' 

100.00 

20000.00 

Thos.  II.  Wilson, 

175 

100.00 

17500.00 

Wm.  Euymond, 

175 

100.00 

17500.00 

Maxwell  Day, 

150 

100.00 

15000.00 

Samuel  Wilder, 

150 

100.00 

15000.00 

L.  J.  Farnsworth, 

150 

'           100.00 

15000.00 

Since  all  of  the  stockholders  are  depositors,  the  dividend  of  each  may  be  posted  to  his  account  in 
the  Balance  Ledger  on  the  next  business  day. 

The  proper  Journal  entries  for  closing  the  Loss  and  Gain  account,  and  also  for  dividing  the  dividend 
among  the  stockholders,  are  given  below.  They  should  be  made  under  date  of  June  29th,  and  immedi- 
ately following  the  work  already  entered  under  that  date,  added  and  posted,  and  the  Journal  again  ruled. 


SATURDAY, 

JUNE    29,   18- 

Surplus  Fund, 
Dividend, 
Undivided  Profits, 

■613 

5000 

524 

83 
50 

Loss  and  Gain, 

6138 

33 

6138 

33 

6138 

33 

KoTB. — When  the  dividend  is  credited  to  the  stockholders  or  paid  to  them  in  cash,  Dividend  account  should  he  cred- 
ited in  the  Journal  for  the  amount  thus  credited  or  paid. 


BALANCES,  GENERAL  LEDGER,  JUNE   22. 


BALANCES,   DEPOSIT  LEDGER,  JUNE  22. 


Capital  Stock,  .        .        - 

200000 

00 

112240 

45 

Cash,    -        -        -        - 

100000 

00 

U.  S.  Bonds,     -        -        - 

Circulation,  -         -         - 

90000 

00 

24500 

00 

Real  Estate,      .        -        - 

2500 

00 

Furniture  and  Fixtures, 

2695 

37 

Expense,  -        -        -        - 

26523 

85 

National  Park, 

Deposits,  -        -        -        - 

232206 

37 

189247 

75 

Bil  s  Discounted,  - 

Interest  and  Discount, 

6679 

82 

Collection  and  Exchange, 

2452 

17 

74751 

27 

Chemical  National,  - 

2236 

96 

G.  K.  Warren  &  Co.,     - 

2201 

80 

First  National,  Rockford,  - 

7402 

67 

Wayne  Co.  National,     - 

3620 

13 

Farmers'  National,    - 

7915 

19 

Third  National,  Newport, 

7335 

70 

Exchange  National,  Bristol, 

597 

54 

Traders'  Nat'l,  Kingston, 

Surplus  Fund,  -        -        - 

31750 

63 

4500 

00 

Redemption  Fund, 

Norwich  National,    - 

142 

59 

Undivided  Profits, 

5718 

42 

681 

32 

Sundry  Banks  and  Bankers, 

6835 
12396 
16413 

8543 
15480 

7481 
17436 
10088 

8409 
28410 

6802 
10074 

6673 

3000 
12868 
10000 
16193 

4041 
925 


2093  28 


W.  F.  Jameson, 
Chas.  J.  Burke,  - 
R.  L.  Mason,  - 
D.  J.  Slocum, 
Stillman  &  Moore,   - 
James  Angle, 
Thomas  H.  Wilson, 
Ray  Brothers,  - 
Meyer  &  Kauffman, 
Johnson  Mfg.  Co.,    - 
Wm.  Raymond,    - 
Maxwell  Day,  - 
Samuel  Wilder,    - 
L.  J.  Farnsworth,    - 
Bingham,  F.  &  W., 
Benj.  Thomas  &  Son, 
Lord  &  Bennett, 
T.  J.  &  W.  E.  Upton, 
Transient  Accounts, 
Certificates  of  Dep't, 
J.  H.  Wentworth,    - 


20496 

32 

13660 

44861 

86 

32465 

35860 

53 

19446 

10921 

75 

2377 

27959 

31 

12479 

17783 

30 

10301 

18453 

51 

1017 

16740 

31 

6651 

18555 

46 

10146 

44455 

00 

16044 

12028 

20 

5226 

16694 

74 

6619 

24809 

81 

18136 

12106 

57 

9106 

22089 

79 

9221 

21060 

75 

11060 

30717 

31 

14523 

21822 

01 

17780 

3071 

35 

2145 

3000 

00 

3000 

12887 

37 

10794 

182 
136 
170 
'85 
131 
.85 
15 
69 
i20 

:54 

102 
199 
;31 

157 
50 
>75 
172 
(28 
>67 
)00 

:09 


After  you  have  completed  the  work  upon  your  books,  present  them  to  the  teacher  for  inspection, 
and  prepare  for  a  written  examination  in  book-keeping,  questions  for  which  will  be  furnished  by  the 
teacher — selected  froni  the  questions  for  review  given  throughout  the  book.  You  will  also  bo  recpiired 
to  make  the  Journal  entries  for  a  variety  of  transactions,  and  to  draw  forms  of  business  paj)er,  as  Letter, 
Bill,  Invoice  of  Shipment,  Account  of  Sales,  Note,  Draft,  Check,  Certificate  of  Deposit,  etc. 


184 


THKOKEl'XOAL    AND    PRACTICAL    BOOK-KKEPING. 
JOURNAL 

MONDAY, 


Bills  Discounted, 

8750, 

fjord  &  Bcuuett, 

1285«», 

Samuel  Wilder, 

970, 

Johnson  Mfg.  Co., 

2875, 

Stillnian  &  Moore, 

1872='5. 

Chas.  J.  Burke, 

5460, 

James  Angle, 

375, 

W.  F.  Jameson. 

926>^ 

D.  J.  Slocum, 

432' S 

Ray  Brothers, 

850". 

Wm.  Raymond, 

1750". 

L.  J.  Farnsworth. 

493'a. 

Benj.  Thomas  &  Son, 

1250, 

T.  J.  &  W.  E.  Upton, 

2115, 

Chemical  Nat.  Bank, 

16381»», 

Coll.  &  Exch., 

Deposits, 

COLL.  &  KXCH. 

DIJPOSITS. 

QENEKAL. 

8750 

1285 

50 

976 

2875 

1872 

25 

5460 

375 

A 

926 

14 

432 

12 

856 

11 

- 

1756 

23 

493 

92 

1250 

2115 

20 

78 

10381 

25 

7 

25 

28 

03 

28 

03 

20673 

20673 

27 


27 

45832 

55 

TUESDAY, 

R.  L.  Mason, 

584»5, 

COLL.  i  BXCH. 

DEPOSITS. 

GENERAL. 

50 

584 

25 

Sti'.lman  &  Moore, 

1249, 

1 

1249 

Meyer  &  Kaullman, 

550]  215, 

705 

Bills  Discounted, 

10000.  1.500,  500, 

12000 

Norwich  Nat.  Bank, 

4150. 

4150 

Exch.  Nat.,  Bristol, 

493", 

493 

18 

Traders'  N.,  Kingston 

,  573»», 

573 

90 

First  Nat.,  Rockford, 

2500, 

2500 

Geo.  K.  Warren  &  Go. 

,  1500, 

1500 

T.  J.  &  W.  E.  Upton, 

1175, 

1175 

Benj.  Thomas  &  Son, 

435", 

435 

57 

Bingham,  Field  &  W. 

2850, 

2850 

Samuel  Wilder, 

894". 

894 

13 

Maxwell  Day, 

948-". 

948 

75 

Johnson  Mfg.  Co., 

3480. 

3480 

Thos.  H.  Wilson, 

2294' «. 

2294 

18 

James  Angle, 

1840. 

1840 

D.  J.  Slocum, 

480' «, 

486 

78 

W.  F.  Jameson, 

1500, 

1500 

Chemical  Nat.  Bank, 

16897, 

15 

75 

16897 

Coll.  &  Exch., 
Deposits, 

6 

94 

24 
18502 

24 

19 

19 

18502 

66 

66 

■ 

56640 

93 

THEORETICAL    AND    PKACTICAL    BOOK-KEEPING. 
JOURNAL. 

JUNE    17.   18—. 


185 


Bingham,  Field  &  Ward, 
Lord  &  Bennett, 
Samuel  Wilder, 
Wm.  Raymond, 
Meyer  &  KaufEman, 
Thos.  H.  Wilson, 
Stillman  &  Moore, 
R.  L.  Mason, 
W.  P.  Jameson, 
Ciiemical  National  Bank, 


Deposits, 


375,  92G»«,  1000, 

2118,  325«°,  92", 

2025,  37"  %  325,  150, 

200,  480,  3115, 

4375,  85, 

10000, 

2500,  187»»,  300, 

3250,  132,  247", 

2000,  342»S  1175, 

7428«», 


2301 
2535 

2537 
3795 
43  GO 
10000 
2987 
3629 
3517 


35G63 


50 

75 
50 


50 
18 
25 


68 


GENERAL. 


7428 


09 


35603 


68 


43091 


77 


JUNE    18,   18—. 


Wayne  Co.  Nat.  Bank, 

Farmers'  Bank,  Canton, 

Collection  &  Exchange, 

Exchange  National,  Bristol, 

Traders'  National,  Kingston, 

First  National,  Kockford, 

Lord  &  Bennett, 

Bingham,  Field  &  Ward, 

Wm.  Raymond, 

.Johnson  Mannfacturing  Co., 

Maxwell  Day, 

Ray  Brothers, 

Thomas  H.  Wilson, 

Stillman  &  Moore, 

R.  L.  Mason, 

Expense, 

Chemical  National  Bank, 


Deposits, 


584'",  1500,  225, 
1250, 

5  0 

2800, 

340, 

1350, 

2500,  1142«»,  177' < 

132«»,1892'«,  450, 

1000,  437»«,  140, 

6450,  573»», 

10000, 

115,  973«»,  4500, 

56",  1394",  250, 

7500, 

4250,  3400, 

12'«, 

7894* », 


DEPOSITS, 


3819 
2474 
1577 
7023 
10000 
5588 
1700 
7500 
7650 


47335 


94 
58 
50 
90 

02 
80 


40 


GENERAL. 


2309 
1250 

2800 

340 

1350 


75 
50 


12 
7894 


18 
43 


47335 


40 


63292 


26 


186 


THKORETiCAl.    AND   PRACTICAL    BOOlt-K.EEPIKG. 

JOURNAL. 

WEDNESDAY, 


T.,  J.  &.  W.  E.  Upton 

,  119=". 

COLL.  &  EXCH. 

bKPOBITS. 

GENERAL. 

60 

119 

25 

R.  L.  Mason, 

8319«»,  432, 

50 

8651 

40 

Wm.  Raymond, 

368* »,  775,  1AH*\ 

50 

1286 

80 

Thos.  H.  Wilson, 

1800,  820 •», 

50 

2620 

99 

G.  H.  Perkins  (T.  A.), 

925«», 

50 

925 

68 

Bills  Discounted, 

9000,  10500,  15000,  5000, 

50 

39500 

First  Nat..  Rockford, 

1455, 

1455 

Farmers'  Bank, 

32'», 

32 

18 

Wavne  Co.  N.  Bank., 

5000, 

5000 

Third  Nat.,  Newport, 

1287' ». 

1287 

IJ 

Lord  &  Bennett, 

3000, 

3000 

• 

Benj.  Tliomas  &  Son, 
L.  J.  Farnswortli, 
Johnson  Mfg.  Co., 
Ray  Brothers, 
Stillman  &  Moore, 
Chas.  J.  Burke, 

1790, 

315, 

5275, 

2910. 

0150, 

3926*«, 

1790 
315 

5275 
2910 
6150 
3926 

42 

Chemical  Nat.  Bank, 

11721»», 

10 

79 

11721 

26 

Coll.  &  Exch., 
Deposits, 

16 

92 

30 
36970 

30 

71 

71 

30970 

54 

54 

95996 

88 

« 

THURSDAY, 


Samuel  Wilder, 

943»^  63", 

COLL.  &  EXCH. 

DEPOSITS. 

GENERAL. 

25 

1007 

59 

Bingham,  Field  &  W., 

215",  550, 

50 

765 

75 

May  Brothers, 

1490»«, 

1 

1490 

66 

Jas.  Angle, 

754",  2873, 

3627 

13 

Bills  Discounted, 

7500,  3000, 

10500 

Certificates  of  Deposit 

3000, 

3000 

Farmers'  Bank, 

94i«, 

. 

94 

16 

Wayne  Co.  National, 

873^*, 

873 

25 

Norwich  National, 

1621', 

163 

11 

W.  F.  Jameson, 

584, 

584 

D.  J.  Slocum, 

13951 8 

1395 

18 

Thos.  H.  WMlson, 

843' ». 

843 

10 

Meyer  &  Kauffman, 

4200, 

4200 

Johnson  Mfg.  Co., 

5125, 

5125 

Benj.  Thomas  &  S(m, 

1975, 

1975 

Lord  &  Bennett, 

2400, 

2400 

J.  H.Wentworth&Co. 

,  1250, 

1250 

Chemical  Nat.  Bank, 

11836", 

15 

27 

16 
85 

118.36 

87 

Coll.  &  Exch., 

Deposits, 

44 

76 

44 
27663 

76 

27663 

41 

41 

51174 

56 

THEORETICAL    AND    PRACTICAL   BOOK-KEEPING. 
JOURNAL. 

JUNE    19,   18— . 


187 


First  National,  Rockford, 

143»», 

DEPOSITS. 

OENERAL. 

143 

90 

Geo.  K.  Warren  &  Co., 

821«», 

831 

49 

Norwich  National, 

368«»,3000, 

3368 

90 

Farmers'  Bank, 

926", 

926 

18 

Collection  &  Exchange, 

5»», 

5 

25 

Wayne  Co.  National, 

211''«, 

211 

50 

Livingston's  Bank  (S.  B.), 

275»», 

375 

50 

T.  J.  &  W.  E.  Upton, 

243«»,  400, 

642 

69 

Lord  &  Bennett, 

52",  146»»,  2234«", 

2434 

11 

Bingham,  Field  &  Ward, 

824",  640,  1138'% 

2603 

05 

Samuel  Wilder, 

2134'%  86"% 

2220 

55 

Johnson  Mfg.  Co., 

896",  27»«,  6000, 

6934 

31 

Ray  Brothers, 

4500, 

4500 

Jas.  Angle, 

1690,  47"% 

1737 

35 

D.  J.  Slocum, 

75,  1793'%  350, 

3117 

63 

Chemical  National  Bank, 

35174*', 

35174 

56 

Deposits, 

23179 

59 

33179 

59 

54106 

87 

JUNE    20,   18- 


if 

Third  National,  Newport,         63»%  346' «, 

Farmers',  Canton,                      3163% 

First  National,  Rockford,         1491«%  34>% 

Wayne  Co.  National,                 7500, 

Traders'  Nat.,  Kingston,          194"% 

Woodruff's  Bank  (S.  B.),          86«% 

Geo.  K.  Warren  &  Co.               732", 

Exchange  Nat.,  Bristol,            17»% 

J.  A.  Bush,                                 497"% 

Wyman  &  Fisher,                       597 »% 

Johnson  Mfg.  Co.,                     1000,  396,  2584,  3000, 

T.  J.  &  W.  E.  Upton,               985,  146»%  75,  843'% 

W:  F.  Jameson,                          345,  3940,  1333% 

D.  J.  Slocuui,                             5000, 

Jas.  Angle,                                 3500,  300,  75,  186»%  94>% 

Thos.  H.  Wilson,                       3000,  2735=% 

Meyer  &  Kauflman,                   2500,  1500,  49*% 

Lord  &  Bennett,                         85,  342*%  1600, 

G.  H.  Perkins  (T.  A.),             925 »% 

Chemical  National  Bank,          4615°% 

Deposits, 

DEPOSITS. 

OENEKAL. 

497 
597 
6980 
2050 
3318 
5000 
4056 
5735 
4049 
1927 
935 

25 
10 

i% 

35 

06 
50 
36 
50 

68 

410 

316 

1525 

7500 

194 

86 

732 

17 

4615 
35136 

86 
35 
83 

50 
40 
81 
39 

04 

35136 

82 

82 

50435 

90 

188 


THteORETtOAL    ANt)    PRACTtCAt   BOOK-KEEPtNG. 

JOURNAL. 

FRIDAY, 


D.  J.  Slocum, 

148»«,  1294", 

OOLI,.  &  EXCH. 

DKPOSITS. 

GENERAL. 

50 

1443 

05 

Samuel  Wilder, 

856<», 

50 

856 

40 

Chas.  J.  Burke, 

1491, 

50 

1491 

L.  AV.  Perry  (T.  A.), 

3643', 

50 

364 

37 

Thos.  H.  Wilson, 

183, 

50 

182 

Bills  Discounted, 

1500,  5000,  287C»», 

9376 

90 

Third  Nat.,  Newport, 

197'", 

197 

46 

Excli.  Nat.,  Bristol, 

388' », 

388 

19 

Traders'  N.,  Kingston, 

2468  3, 

246 

83 

Wm.  Kaymond, 

2250, 

2250 

Maxwell  Day, 

1350,  3000' 3, 

5310 

12 

L.  J.  Farnsworth, 

3118'". 

3118 

07 

Lord  &  Bennett, 

6190»3, 

6190 

83 

T.  J.  &  W.  E.  Upton, 

4114««, 

4114 

60 

J.  H.  Wentworth  &  Co. 

,8673»», 

8673 

95 

E.  L.  Mason, 

5000, 

5000 

Chemical  Nat.  Bank. 

132643*, 

16 

04 

13264 

34 

Coll.  &  Exch., 
Deposits, 

e 

11 

96 

30 
38994 

30 

50 

50 

38994 

39 

39 

62498 

61 

SATURDAY. 


Lord  &  Bennett, 

1499,  4480, 

Chas.  J.  Burke, 

957'*, 

D.  J.  Slocum, 

88",  375, 

Jas.  Angle, 

395" ^  1349' % 

Dunn  &  Cole  (T.  A.), 
S.  H.  Lowe  (T.  A.), 

863, 

9183", 

Woodruff's  Bank  (S.B. 

)86*», 

Wayne  Co.  N.,  Lyons, 

212",  74' »,  9; 

Bills  Discounted, 

2150,  7200, 

Norwich  National, 

13«», 

First  Nat.,  Rockford, 

97»'', 

Samuel  Wilder, 

1947' », 

R.  L.  Mason, 

1200, 

Stillman  &  Moore, 

900. 

Bingham,  Field  &  W. 
J.  H.  Wentworth  &  Co. 

682", 

,2963'"'. 

Benj.  Thomas  &  Son, 

1646«2. 

Chemical  Bank, 

6914", 

Coll.  &  Exch., 

Deposits, 

934' », 


COLI,.  &  EXCH. 


9 
23 


34 


50 
25 
50 
25 


03 
45 


98 


5979 
957 
463 

1745 
863 
918 


1947 
1200 
900 
682 
2963 
1646 


20266 


15 
15 

27 

30 


80 


11 
42 
92 


12- 


GENERAL. 


86 

1221 

9350 

13 

97 


6914 

34 
20266 
37985 


40 

78 

40 
80 


78 

98 
12 
26 


THEORETICAL    AND    PRACTICAL    BOOK-KEEPING. 
JOURNAL 

JUNE    21,   18—. 


189 


V 
V 


Wayne  Co.  National,  Lyons, 
Farmers'  Bank,  Canton, 
Third  Nat.,  Newjiort, 
First  National,  Kockford, 
Livingston's  Bank  (S.  B.), 
Exch.  Bank,  Geneva  (S.  B. ), 
Clias.  J.  Burke, 
R.  L.  Mason, 
Jas.  Angle, 
Stillman  &  Moore, 
Johnson  Mfg.  Co., 
Samuel  Wilder, 
Bingham,  Field  &  W'ard, 
Benj.  Thomas  &  Sou, 
Chemical  National  Bank, 
H.  W.  Phillips, 
Morgan  &  Seelye, 


Deposits, 


149* «,  393' •, 

856" »,  49" », 

364»', 

181<»,  183»», 

382, 

23° " 

10000,  546 »«,  1850, 

134«s,  5000, 

3149»,  1165,  123' «,  85, 

3500,  14925°, 

11225%  97^  2463' », 

186''»,  1729»', 

916<»,  2422'", 

10000, 

47355% 

992=", 

1479=", 


DEPOSITS. 

GENERAI 

641 

906 

364 

363 

382 

23 

13396 

50 

5134 

65 

1688 

14 

4992 

50 

3682 

25 

1915 

45 

3339 

16 

10000 

4725 

992 

25 

1479 

31 

45620 

21 

45620 

53929 

94 

70 
87 
90 

82 


56 


21 


JUNE    22,   18—. 


Exch.  National,  Bristol, 

1500,  33<% 

DEPOSITS. 

GENERAL. 

1533 

44 

Wayne  Co.  Nat.,  Lyons, 

88«», 

88 

40 

Geo.  K.  Warren  &  Co., 

3961% 

396 

15 

Collection  «&.  Exch., 

I  3 

12 

ThirdNational,  Newport, 

136»%  7300, 

7336 

93 

Farmers',  Canton, 

6P% 

fil 

37 

D.  J.  Slocum, 

183",  M3'%  100,  300, 

1426 

37 

L.  J.  Farnsvvorth, 

3000, 

3000 

Wm.  Raymond, 

1635%  39405^  873'% 

1439 

68 

Lord  &  Bennett, 

4000,  1363<%  312<'5, 

5476 

39 

Johnson  Mfg.  Co., 

3500,    150,  150, 

3800 

J.  IL  W^entworth  &  Co., 

1829^%  163»%  100, 

2093 

38 

T.  J.  &  W.  E.  Upton, 

112'%  986»%  250, 

1348 

83 

Bingham,  Field  &  Ward, 

2150, 

3150 

Maxwell  Day, 

74' 5, 

74 

75 

\/ 

Henry  Sears, 

5231% 

532 

11 

Chemical  National  Bank, 

5653»% 

5653 

96 

Deposits, 

31331 

30 

31331 

20 

, 

36381 

46 

190 


THEORETICAL    AND    PKACTICAL    BOOK-KEEPING. 


DISCOUNT    REGISTER. 


When  Disc'd. 

No. 

June 

17 

528 
529 
530 

- 

531 

18 

532 
533 
534 
535 
536 

19 

537 
538 
539 

540 
541 

30 

542 
543 
544 
545 
546 
547 

21 

548 
549 
550 
551 

22 

552 
553 
554 

J.  D.  Winslow. 
H.  Wliitaker. 
A.  M.  Ilastiugs. 
Johnson  Mfg.  Co. 


P.  L.  Paine. 
D.  n.  Davis. 
Isaac  Willis. 
J.  D.  Shultz. 
T.  G.  Lord. 


Ward  &  Cobb. 
Young  &  Baldwin. 
T.  K.  Scott. 
Wm.  Kaymond. 
Meyer  &  KaufEman. 


Havens  &  Co. 
Samuel  Wilder. 
Eobert  Moore. 
Philip  Warner. 
Wynian  &  Fisher. 
Darwin  &  Kent. 


H.  W.  Phillips. 
Shelby  &  Co. 
Jones  &  Hardy. 
H.  A.  Wood. 


Thomas  Brooks. 
Fanning  &  Peck. 
Ellis  &  Ilayden. 


ENDORSERS. 


Chas.  J.  Burke. 
D.  J.  Slocum. 
Samuel  Wilder. 
Freeman  Clarke. 


Johnson  Mfg.  Co. 
Maxwell  Day. 
Samuel  Wilder. 
Thos.  H.  AVilson. 
R.  L.  Mason. 


J.  Jackson,Jr.,  D.  J.  Slocum, 
Jas.  Angle. 
L.  J.  Farnsworth. 
Bingham,  Field  &  Ward. 
W.  M.  Bond. 


R.  L.  Mason. 
J.  A.  Lindsay. 
Meyer  &  KaufEman. 
J.  A.  Bush,  John  Rice. 
J.  H.  Price. 
Johnson  Mfg.  Co. 


Henry  Chase,  A.  Springer. 

R.  L.  Mason. 

Samuel  Wilder. 

L.  M.  Lay,  Morgan  Seelye. 


H.  Sears,  F.  Woodbury  &  Son. 
Stillman  &  Moore. 
Wm.  Raymond. 


ofB.  B. 


WHERE  PAYABLE. 


Exch'ge,  City. 
1st  N.,  Lyons. 
Union,  City 
Our  Bank. 


1st  N.,  Lyons. 
Woodr'il's,  Liv. 
Farmers',  Cant. 
C's  B'k,  Rich. 
Norwich  Nat. 


2d  Nat. ,  Lyons. 
Union,  City. 
Exch'ge,  City. 
Our  Bank. 
Our  Bank. 


Union,  City. 
Our  Bank. 
1st  N.,  Lyons. 
Union,  City. 
Farmers',  Cant. 
Norwich  Nat. 


W.C.N.  Lyons. 
Norwich  Nat. 
Union,  City. 
Exch'ge,  City. 


Union,  City. 
Exch'ge,  City. 
1st  N.,  Lyons. 


June 


April 
May 
June 
M'ch 


June 


June 


June 


June 


17 
15 

17 
17 


15 
15 
10 
18 
9 


19 
19 
15 
19 
19 


20 
19 
20 
20 
16 
16 


21 
19 
20 
21 


23 

23 
18 


THEORETICAL    AND    PRACTICAL    BOOKKEEPING. 


191 


DISCOUNT    REGISTER. 


TIME. 

WHEN  PUE. 

PACE  OF  PAPER.I 

DISCOUNT.  1 

COLt.  &  EX. 

PROCEEDS. 

II 

FOR  WHOM  DISCOUNTED. 

REM'KS. 

E-O 

».o 

30  da. 

July 

20 

858 

90 

4 

72 

854 

18 

Chas.  J.  Burke. 

1  mo. 

18 

1350 

6 

46 

3 

56 

1340 

98 

D.  J.  Sloeum. 

10  da. 

June 

30 

3875 

8 

40 

3866 

60 

Samuel  Wilder. 

y 

30  da. 

July 
July 

20 
18 

5000 

37 

50 

4973 

50 

Johnson  Mfg.  Co. 
Johnson  Mfg.  Co. 

10983 

90 

47 
21 

08 
63 

2 

56 

10934 

36 

96 

30  da. 

4335 

9 

41 

4393 

3  mo. 

18 

1500 

7 

50 

2 

88 

1489 

63 

Maxwell  Day. 

60  da. 

13 

3394 

80 

9 

58 

4 

98 

3380 

34 

Samuel  Wilder. 

1  ino. 

31 

398 

50 

2 

19 

1 

395 

31 

Thos.  H.  Wilson. 

4  mo. 

July 

13 
23 

960 

3 

84 

1 

70 

954 

46 

E.  L.  Mason. 
D.  J.  Sloeum. 

9578 

30 

44 
16 

74 
50 

19 

97 

9513 

59 
75 

30  da. 

3000 

6 

75 

2976 

15  da. 

7 

380 

1 

14 

378 

86 

Jas.  Angle. 

1  mo. 

18 

1800 

8 

70 

1791 

30 

L.  J.  Farnsworth. 

5  da. 

June 

37 

1450 

1 

93 

1448 

07 

Bingham,  ¥.  &  W. 

20  da. 

July 
July 

13 
33 

3000 

7 

67 

1992 

33 

Meyer  &  K. 
R.  L.  Mason. 

8630 

35 

2 

94 

48 

6 

75 

8587 

31 

52 

30  da. 

450 

447 

1  mo. 

23 

1500 

8 

1493 

Samuel  Wilder. 

20  da. 

13 

2300 

8 

43 

4 

75 

3186 

83 

Meyer  &  K. 

30  da. 

33 

500 

2 

75 

497 

25 

J.  A.  Bush,  Cash. 

V 

1  mo. 

19 

600 

2 

90 

597 

10 

,W.  &  P.,  Cash. 

V 

30  da. 

July 

19 
24 

1500 

7 

25 

3 

88 

1489 

87 

Johnson  Mfg.  Co. 
H.W.Phillips,  Cash 

w' 

6750 

31 
5 

81 
50 

7 

.63 

6710 

56 
25 

30  da. 

1000 

3 

35 

993 

30  da. 

33 

575 

2 

97 

1 

23 

570 

81 

R.  L.  Mason. 

30  da. 

33 

173 

91 

93 

173 

98 

Samuel  Wilder. 

20  da. 

July 

14 

35 

1485 

5 

69 

1479 

31 

M.  Seelye,  Cash. 
H.  Sears,  Cash. 

3333 

91 

15 
3 

09 
89 

3 

47 

3215 

35 
11 

30  da. 

535 

522 

20  da. 

15 

1500 

5 

75 

1494 

25 

Stillman  &  Moore. 

30  da. 

31 

2650 

13 

81 

5 

31 

2631 

88 

Wm.  Raymond. 

4675 



31 

45 

5 

31 

4648 

34 

192 


Dr. 


THEORETICAL    AND    PRACTICAL    BOOK-KEEPING. 

NEW  YORK  DRAFT  REGISTER. 

SECOND    NATIONAL    COLLEGE    BANK, 
MONDAY, 


NO. 

BY   WHOM   DRAWN. 

OF  WHAT  PLACE. 

ON  WHAT  BANK. 

FACE. 

Balance, 

96375 

13 

234 

First  NationaL 

Dayton. 

Shoe  &  Leather. 

2875 

1851 

Commercial. 

Corning. 

Metropolitan. 

542 

75 

753 

City  Bank. 

Holley. 

Broadway. 

37 

20 

115 

Seward's. 

Auburn. 

Chemical. 

1123 

U 

1331 

Exchange. 

Geneva. 

Third  National. 

2475 

4 

Steele  &  Avery. 

City. 

TUES 

D.  Slote  &  Co. 
DAY, 

375 

7428 

09 

103703 

22 

Balance, 

87321 

97 

161 

Woodruff's. 

Livonia. 

Sixth  National. 

499 

50 

943 

First  National. 

Rockford. 

Broadway. 

2500 

341 

Geo.  K.  Warren  c%  Co. 

Bath. 

Union  Trust  Co. 

1500 

108 

Ward's. 

Union. 

Third  National. 

86 

90 

347 

First  National. 

Butler. 

Chemical. 

583 

11 

4043 

Second  National. 

Byron. 
Warsaw. 

WEDNES 

Broadway. 

2586 

74 

48 

Clark's. 

Sixth  National. 
DAY, 

138 

18 

7894 

43 

95216 

40 

Balance, 

78319 

40 

858 

T.  J.  &  W.  E.  Upton, 

Collection. 

119 

75 

854 

R.  L.  Mason. 

a 

432 

50 

1486 

Exchange  National. 

Dansville. 

Bowery. 

Fifth  National. 

10494 

75 

4142 

Wayne  Co.  National. 

Lyons. 

5000 

372 

Third  National. 

Newijort. 

Bowery. 

1287 

19 

1009 

First  National. 

Memphis. 

Broadway. 

63 

94 

416 

Wheeler's.                   i 
Richmond's. 

Belleville. 

Second  National. 

489 

43 

3142 

Batavia. 

Chemical. 

6300 

113 

Ray  Brothers. 

City. 

THURS 

Cook  &  Lane. 
DAY, 

987 

25174 

66 

103493 

96 

Balance, 

91773 

70 

1042 

First  National. 

Princeton. 

Bowery. 

193 

82 

213 

Woodruff's. 

Livonia. 

Sixth  National. 

1482 

90 

194 

Ward's. 

Union. 

Third  National. 

-     18 

25 

1516 

Exchange  National. 

Dansville. 

Bowery. 

411 

07 

2104 

Commercial. 

Corning. 

Metropolitan. 

1242 

16 

13492 

First  National. 

Waverly. 

Union  Trust  Co. 

27 

90 

826 

City  Bank. 

Holley. 

Broadway. 

146 

83 

1513 

Exchange. 

Geneva. 

Third  National. 

875 

482 

First  NationaL 

Butler. 

FRI 

Chemical. 
DAY. 

218 

11 

4615 

04 

. 

96387 

74 

Balance, 

84550 

87 

8046 

First  National. 

Belfast. 

Ninth  National. 

1491 

50 

1143 

Second  National. 

Westboro. 

Bowery. 

188 

63 

896 

Grangers' 

Jackson. 

Metropolitan. 

864 

50 

693 

Exchange. 

Norwich. 

Sixth  National. 

92 

18 

13482 

Manufacturers' 

Middletown. 

Ninth  National. 

1143 

75 

132 

F.  W.  Richmond. 

Goshen. 

Chemical. 

945 

4735 

56 

89276 

43 

THEOKETICAL    AND    PKACTICAL    BOOK-KEKPING. 

NEW  YORK   DRAFT  REGISTER. 

In  Account  with  CHEMICAL  NATIONAL  BANK,    NEW  YORK. 
JUNE    17,   18—. 


ly;^ 


NO. 

IN  WHOSE   FAVOR  DRAWN. 

EXCHANGE. 

FACE. 

585 

Lord  &  Bennett, 

50 

325 

10 

586 

Samuel  Wilder, 

1 

50 

1200 

. 

587 

G.  W.  Cook, 

15 

56 

15 

588 

Mever  &  Kauffman, 

3 

13 

2500 

589 

Stillman  &  Moore, 

50 

300 

590 

Thos.  H.  Wilson, 

13 

50 

10000 

591 

W.  F.  Jameson, 

Balance  (Red  Ink), 

JUNE   IS. 

3 

50 

2000 

16381 
87321 

25 
97 

20 

78 

103703 

33 

593 

Lord  &  Bennett, 

1 

1141 

80 

593 

Bingham,  Field  &  Ward, 

25 

133 

30 

594 

Win.  Raymond, 

50 

437 

595 

Johnson  Manufacturing  Co., 

6 

G444 

596 

Ray  Brothers, 

4 

4496 

597 

R.  L.  Mason, 
Balance, 

JUNE  19. 

4 

4246 

16897 
78319 

40 

15 

75 

95316 

40 

598 

First  National,  Belleville, 

25 

411 

50 

599 

Norwicli  National, 

3000 

600 

T.  J.  &  W.  E.  Ui^ton, 

50 

400 

601 

Lord  &  Bennett, 

15 

52 

35 

602 

Samuel  Wilder, 

3 

34 

1790 

26 

603 

Johnson  Manufacturing  Co., 

7 

50 

59V/2 

50 

604 

D.  J.  Slocum, 

15 

74 

75 

11721 

26 

Balance, 

91772 

70 

JUNE  20. 

10 

79 

103493 

96 

605 

Johnson  Manufacturing  Co., 

1 

35 

998 

75 

606 

D.  C.  Allison, 

15 

17 

607 

W.  F.  Jameson, 

50 

244 

50 

608 

L.  S.  Liinsing, 

35 

116 

609 

D.  J.  Slocum, 

6 

34 

4993 

75 

610 

P.  J.  Dudley, 

15 

73 

50 

611 

Meyer  &  Kauifman, 

3 

13 

3496 

87 

613 

W.  B.  Sage, 

1 

35 

1000 

613 

Lord  &  Bennett, 

2 

1598 

614 

D.  G.  Lamson's  Bank, 
Balance, 

JUNE  21. 

35 

398 

50 

11836 
84550 

87 
87 

15 

16 

96387 

U 

615 

Cascade  Bank,  Portage, 

35 

843 

65 

616 

Chas.  J.  Burke, 

13 

50 

9990 

617 

R.  L.  Mason, 

2 

74 

2188 

618 

R.  W.  Bush, 

15 

18 

50 

619 

A.  B.  Ward, 

25 

143 

630 

Jerome  Sackett, 
Balance, 

15 

82 

19 

13264 
76012 

34 
09 

18 

04 

89376 

43 

' 

194 


THEORETICAL    AND    PRACTICAL    BOOK-KEEPING. 


Dr 


NEW  YORK  DRAFT  REGISTER. 

SECOND    NATIONAL   COLLEGE    BANK, 
SATURDAY, 


NO. 

BY  WHOM   DRAWN. 

OF  WHAT  PLACE. 

ON  WHAT  BANK. 

FACE. 

Balance, 

76012 

09 

828 

Chas.  J.  Burke, 

Collection, 

957 

65 

1009 

Howard's, 

Dundee, 

Bowery, 

440 

94 

464 

First  National, 

Preston, 

Mfg.  &  Traders', 

132 

29 

104 

J.  H.  Clark's, 

Woodville, 

Croton, 

273 

91 

1264 

Second  National, 

Plainville, 

Ninth  National, 

2500 

749 

Lament  &  Thomas, 

Morrisville, 

Sixth  National, 

382 

46 

6891 

First  National, 

Williamstown, 

Chemical, 

11 

18 

317 

Woodruff's, 

Livonia, 

Sixth  National, 

86 

28 

910 

Exchange, 

Geneva, 

First  National, 

863 

25 

5653 

36 

81666 

05 

COLLECTION    REGISTER. 


WHEN  I.EIT. 


June 


17 


18 


19 


20 


854 
855 
856 

857 
858 
859 
860 
861 
863 
863 
864 
865 
866 
867 
868 
869 
870 
871 
872 
873 
874 
875 
876 
877 
878 
879 
880 
881 
882 
883 
884 
885 
886 
887 
888 
889 
890 


L.  W.  Wooden, 
L.  F.  Chappell, 
W.  B.  Murdock, 

D.  A.  Welles, 
Daniel  Boody, 
W.  Haynes, 
Peter  liradley, 
N.  Fisher  &  Co., 
Union  Bank, 
Johnson  Mfg.  Co., 
D.  B.  Hill, 
P.  G.  Warren, 
D.  L.  Price  &  Co., 
A.  A.  Wildman, 
W.  L.  Peters, 
W.  F.  Burrows, 
Miller  &  Co., 
Wendell  &  Hone, 
Harvey  Brown, 
0.  W.  Lansing, 
M.  M.  Ward, 
Yeoman  &  Blake, 
W.  H.  Atwater, 
W.  Dunn, 
Ward  &  Holmes, 
King  &  Co., 
Warren  &  Co., 
Wilson  &  Caldwell, 
Nellis  &  Knox, 
Jas.  Angle, 
Hart  &  Shepard, 
Peter  Wallace  &  Co. , 
Jas.  Angle, 
W.  A.  Hood, 
L.  W.  Gage, 
Tubhs  &  Co., 
Norman  Lacy, 


ENDORSER. 


R.  L.  Mason, 
Stillman  &  Moore, 
G.  H.  Perkins, 

James  Angle, 
T.  J.  &  W.  E.  Upton, 
Samuel  Wilder, 
Wm.  Raymond, 
H.  B.  Cook&  Co., 
D.  J.  Loomis, 
A.  B.  Wilson, 
W.  F.  Jameson, 
Johnson  Mfg.  Co., 
Maxwell  Day, 
James  Angle, 
W.  F.  Jameson, 
James  Angle, 
Ray  Brothers, 
Meyer  &  Kauffman, 

A.  L.  Underbill, 
Brooks  &  Smith, 
S.  P.  Stevens, 

B.  T.  Jones  &  Co., 
Lord  &  Bennett, 
Wm.  Raymond, 

D.  J.  Slocum, 
Samuel  Wilder, 
Chas.  J.  Burke, 
L.  W.  Perry, 
Thos.  H.  Wilson, 
P.  G.  White, 

C.  A.  Stone, 
Weaver  &  Jones, 

E.  H,  Mott  &  Co., 
C.  A.  Parry  &  Co., 
Warren  &  Sharp, 
Samuel  Wilder, 

T.  J.  &  W.  E.  Upton, 


WHERE   PAYABLE. 


Nyack, 

Chemical, 

Second  Nat'l, 

Lyons, 

Wayne  Co.  Nat'l, 

Canton, 

Farmers', 

Union,  City, 

Hoboken, 

Chemical, 

Norwich, 

Norwich  Nat'l, 

Rockford, 

First  National, 

City, 

Union  Bank, 

City, 

City, 

Lyons, 

Wayne  Co.  Nat'l, 

Bristol, 

Exchange  Nat'l, 

Kingston, 

Traders', 

Rockford, 

First  National, 

Hoboken, 

Chemical, 

Exchange,  C 

ty. 

First  Nat'l,  K 

ingston. 

Traders'  Nat'l, 

Canton, 

Farmers'  Bank, 

L'nion,  City, 

City, 

City, 

City, 

Lyons, 

Wayne  Co.  Nat'l, 

Corning, 

Livingston's, 

Lyons, 

Wayne  Co.  Nat'l, 

Canton, 

Farmers', 

Belfast, 

First  National, 

Newport, 

Third  National, 

Rockford, 

First  National, 

City, 

City, 

City, 

City, 

Exchange,  Ci 

ty. 

City, 

Kingston, 

Traders'  Nat'l, 

Rockford, 

First  National, 

TO  WHOM  SENT. 


THKOKETICAL    AND    PRACTICAL    BOOK-KEEPING. 


195 


NEW  YORK  DRAFT  REGISTER. 

In  Account  with  CHEMICAL  NATIONAL  BANK,    NEW  YORK. 
JUNE    22,   18—. 


Cr. 


NO. 

IN  WHOSE  FAVOR  DBAWN. 

EXCHANGE. 

FACE. 

621 

F.  N.  Jefferson, 

15 

114 

78 

622 

D.  J.  Slocum, 

50 

200 

623 

Johnson  Manufacturing  Co., 

4 

38 

3500 

624 

J.  H.  Wentworth  &  Co., 

25 

100 

625 

L.  J.  Farnsworth, 
Balance, 

3 

75 

3000 

6914 

74751 

78 

27 

9 

03 

81666 

05 

COLLECTION   REGISTER. 


DATE 

TIME. 

WHEN  DUE. 

June 

17 

Sight, 

April 

1 

3  mo. 

July 

4 

June 

17 

Sight, 

May 

18 

30  da. 

June 

20 

June 

17 

Sight, 

13 

10  da. 

26 

17 

Sight, 

17 

Sight, 

17 

Sight, 

17 

Sight, 

18 

Sight, 

18 

Sight, 

18 

Sight, 

18 

Sight, 

18 

10  da. 

July 

1 

May 

1 

2  mo. 

3 

April 

30 

2  mo. 

3 

June 

18 

15  da. 

G 

19 

2  da. 

Juno 

24 

18 

Sight, 

18 

Sight, 

18 

Sight, 

19 

Sight, 

19 

Sight, 

19 

Sight, 

19 

Sight, 

19 

Sight, 

19 

Sight, 

19 

Sight, 

19 

Sight, 

18 

Sight, 

19 

Sight, 

Mch. 

22 

3  mo. 

June 

25 

May 

25 

30  da. 

27 

June 

19 
20 
20 

Sight, 
Sight, 
Sight, 

FOR  WHOM  COLLiECTEU. 

K.  L.  Mason, 
Stillman  &  Moore, 
0.  H.  Perkins, 

James  Angle, 
T.  J.  &  W.  E.  Upton, 
Samuel  Wilder, 
Wm.  Raymond, 
Norwich  National, 
Exch.  National,  Bristol, 
Tniders'  Nat'l,  Kingston, 
Ourselves, 
Ourselves, 
Ourselves, 
Ourselves, 
AV.  F.  Jameson, 
James  Angle, 
Ray  Broth  e''s, 
Meyer  &  KaufEman, 
Geo.  K.  Warren  &  Co., 
First  National,  Rockford, 
Farmers',  Canton, 
First  National,  Belleville, 
Ourselves, 
Ourselves, 
D.  J.  Slocum, 
Samuel  Wilder, 
•Chas.  J.  Burke, 
L.  W.  Perry, 
Thos.  H.  Wilson, 
Farmers'  Bank, 
D.  G.  Lamson's  Bank, 
Wayne  Co.  National  Bank, 
Traders'  National, 
Wisner  &  Clark's  Bank, 
Norwich  National, 
Ourselves, 
Ourselves, 


CHECK.       1 

T.otCr. 

Paid. 

432 

50 

1250 

^/ 

926 

18 

Int. 

750 

119 

75 

V 

V 

1842 

11 

143 

90 

4150 

493 

18 

573 

90 

225 

2800 

340 

1350 

918 

75 

1290 

482 

60 

1194 

83 

942 

17 

1455 

32 

18 

411 

75 

V 

211 

50 

275 

50 

149 

44 

856 

90 

1492 

364 

87 

182 

50 

94 

16 

298 

75 

^ 

873 

25 

1400 

375 

162 

11 

194 

50 

34 

17 

KBMAKKS. 


Proceeds  by  N.  Y.  draft. 
Protested. 


Proceeds  by  N.  Y.  draft. 


196 


THEORETICAL    AND    PRACTICAL    BOOKKEEPING. 

DISCOUNT  TICKLER. 

JUNE    17,   18—. 


NO. 

PAYEK. 

ENDORSER. 

WHERE  PAYABLE. 

TO  WHOM  SENT. 

AMOUNT. 

CK 

REMARKS. 

•482 
483 
484 

H.  Whitaker, 
H.  C.  Decker, 
W.  S.  Chapiu, 

D.  J.  Slocum, 
Wm.  Eaymond, 
W.  W.  Wheeler, 

2d  Nat'l,  Lyons, 
Exchange,  City, 
Woodruff,  Livonia, 

Wayne  Co.  Lyons 
Same, 

1500 

8750 

500 

P.    &    E. 

18. 


485 
486 


Maxwell  Day, 
A.  0.  Bunnell, 


Burt,  Brace  &  Co. 
Joseph  Cone, 


Our  Bank, 
Exch.,  Dansvillc, 


Same, 


10000 
10500 


19. 


487 

488 
489 
490 


A.  M.  Hastings, 

W.  T.  Tinsley, 
H.  Bancroft, 
J.  Wilson  &  Co., 


Samuel  Wilder, 
Mover  &  Kauffman 
J.  A.  Munson, 
Samuel  Wilder, 
Lord  &  Bennett, 


Union,  City, 

Wayne  Co.,  Lyons, 
Our  Bank, 
Our  Bank, 


Same, 


5000 

7500 

9000 

15000 


20, 


491 
492 


P.  J.  Smith, 
Johnson  Mfg.  Co. 


Ray  Brothers, 
Freeman  Clarke, 


3d  Nat'l,  III  ew port. 
Our  Bank, 


Same, 


7200 
3000 


21, 


493 
494 
495 


R.  L.  Mason, 
D.W.  Smith  &  Co. 
L.  J.  Pratt  &  Co., 


P.  J.  Moore, 
James  Angle, 
James  Angle, 


Our  Bank, 
Union,  City, 
Exchange,  City, 


5000 

2876 
1500 


90 


22. 


496 
497 
498 
499 


Bingham,  F.  &  AV. 
P.  Wise  &  Son, 
Creed  &  Wilson, 
Brown  &  Wood, 


C.  D.  Cox, 
Bingham,  F.&W., 
R;iy  Brothers, 
B.  Thomas  &  Son, 


Our  Bank, 

2d  Nat'l,  Palmyra. 

Union,  City, 

3d  Nat'l,  New])ort, 


Same, 
Same, 


2150 
1800 
2500 
1750 


v 


Protested. 
P.  &  E.  24th. 


24. 


500 
501 


W.  F.  Jameson, 
Robert  Vaughn, 


James  Brackett, 
Lord  &  Bennett, 


Our  Bank, 
Union,  City, 


12000 
2540 


18 


25. 


502 
503 


H.  W.  Glass, 
L.  W.  Davis, 


Wm.  Raymond, 
Thos.  n.  Wilson, 


Brown  &  Co.,  Can- 
ton, 
Exchange,  City, 


Farmers',  Canton 


785 
3250 


THEORETICAL    AND    PRACTICAL    BOOK-KEEPING. 

COLLECTION   TICKLER. 

JUNE    17,   18—. 


197 


NO. 

PAYER. 

WHERR  PAYABLE. 

TO  WHOM  SENT. 

FOR  WHOM  coi,m:ctkd. 

AMOUNT. 

OK 

REMARKS. 

819 
820 

J.  H.  Wing, 
Porter  Far  ey, 

Lyons, 
Canton, 

Wayne  Co.,  Lyons, 
Farmers',  Canton, 

R.  L.  Mason, 
Stillman  &  Moore, 

584 
1250 

75 

V 

P.  &  K. 

18. 

831 

822 
823 

Jolin  B.  Sage, 

Henrv  A.  Strong, 
W.  D.  McGuire, 

Geo.  K.  Warren  & 

Co.,  Batli, 
Union,  City, 
Norwich, 

Same, 

Norwich  National, 

Thos.  H.  Wilson, 

Meyer  &  Kauflman 
Wm.  Raymond, 

Int. 

817 

215 

368 

90 

19. 

824 
825 

820 

■    »— 

E.  F.  Woodbury, 
.J.  E.  Booth, 

P.  Ford, 

Newport, 
Canton, 

Rockford  Co.  Bank 

3d  Nat'l,  Newport, 
Farmers',  Canton, 

1st  Nat'l,  Rockford 

Samuel  Wilder, 
Bingham,  F.  &  W. 

Ray  Brothers, 

63 
216 

Int. 

1483 

92 
25 

50 

20. 

827 
828 
829 
830 

857 

J.  M.  Harrison, 
R.  S.  Kenyon, 
A.  L.  Mabhett, 
J.  L.  Townsend, 

D.  A.  Welles, 

Bristol, 
New  York, 
Lyons, 
Bath, 

Union,  City, 

Exchange  National 
Chemical, 
Wayne  Co.  Nat'l, 
Geo.  K.  Warren  & 
Co.,  Bath, 

Lord  &  Bennett, 
Chas.  J.  Burke, 
D.  J.  Slocum, 
James  Angle, 

James  Angle, 

:  1500 

957 

88 

396 

Int. 

750 

65 
40 
15 

21, 

831 

832 

F.  W.  Clark, 
Ward  Kelly, 

Norwich, 
Union,  City, 

Norwich  National, 

Johnson  Mfg.  Co., 
Maxwell  Day, 

911 
1350 

13 

22. 

833 
834 
835 
836 

Arthur  Ranney, 
Jacob  Hoekstra, 
A.  M.  Hastings, 
L.  S.  Fulton, 

Canton, 

Exchange,  City, 
Yonkers, 
Lyons, 

Farmers'  Bank, 

Chemical, 
Wayne  Co.  Nat'l, 

L.  J.  Farnsworth, 
S.  H.  Lowe, 
W.  F.  Jameson, 
R.  L.  Mason, 

1215 
918 
856 
126 

30 
62 
90 

24. 

837 

872 

Chas.  F.  Ham, 
Harvey  Brown, 

Union,  City, 
Union,  City, 

Stillman  &  Moore, 
Geo.  K.  Warren  & 
Co., 

318 
942 

20 
17 

9 

25. 

886  James  Angle, 


Our  Bank, 


Traders'  National. 


1400 


198 


THEORETICAL   AND    PRACTICAL   BOOK-KEEPlNft. 


DEPOSIT  LEDGER. 

We  give  below  three  forms  of  Deposit  Ledger,  and  following  those  the  form  of  what  is  called  the 
Balance  Ledger.  The  first  form  illustrated  does  not  differ  from  the  ordinary  Ledger,  excepting  that  an 
extra  column  is  provided  on  the  right  side  for  balances.  In  case  of  an  over-draft,  the  amount  of  it 
should  be  entered  in  the  balance  column  in  red  ink. 

The  second  form  differs  from  the  first  in  having  the  credit  amounts  placed  next  to  the  debit  amounts, 
and  the  folio  and  date  and  explanation  to  the  left  and  right  of  these.  Computations  are  greatly  facili- 
tated by  bringing  the  money  columns  in  immediate  proximity. 

The  third  form  contemplates  doubling  the  capacity  of  the  page,  by  providing  two  distinct  sets  of 
columns,  omitting  the  explanation  column.  The  daily  balances  are  here  shown,  the  same  as  in  the 
other  forms.  If  found  desirable,  two  accounts  may  be  opened  on  the  same  page,  one  on  each  side  of 
the  double  ruling. 

CHAS.  J.  BURKE. 


DATE. 

ITEM. 

Folio. 

AMOUNT. 

DATE. 

ITEM. 

Folio. 

BAI.ANCE. 

AMOUNT. 

June 

21 

J. 

12396 

50 

June 

15 

32173 

11 

25 

6305 

53 

17 

K. 

854 

18 

36 

4103 

42 

17 

J. 

38487 

29 

5460 

27 

675 

19 

42413 

71 

3926 

42 

28 

3223 

71 

21 
22 
24 
25 
26 
27 
28 

31608 
32465 
35965 
29659 
25556 
27131 
26095 

21 
36 
36 
83 
41 
41 
25 

1491 

957 

3500 

2250 
2187 

15 
55 

CHAS.  J.  BURKE. 


DATE 

Folio. 
J. 

AMOUNT. 

AMOUNT. 

BAL.ANCE. 

Folio. 

DATE 

June 

21 

12396 

50 

32173 

11 

June 

15 

25 

6305 

53 

854 

18 

R. 

17 

26 

4103 

42 

5460 
3926 
1491 
957 
3500 

42 
15 

38487 
42413 
31508 
32465 
35965 
29659 
25556 

29 
71 
21 
36 
36 
83 
41 

J. 
J. 

17 
19 
21 
22 
24 
25 
26 

CHAS.  J.  BURKE. 


DATE. 

POLIO. 

DEBIT. 

CREDIT. 

BALANCE. 

DATE. 

FOLIO. 

DEBIT. 

CREDIT. 

BALANCE. 

June 

15 

32173 

11 

June 

21 

J. 

12396 

50 

31508 

21 

17 

R. 

854 

18 

33027 

29 

22 

957 

15 

32465 

36 

17 

J. 

5460 

38487 

29 

24 

3500 

35965 

36 

19 

3926 

42 

42413 

71 

35 

6305 

53 

29659 

83 

21 

1491 

43904 

71 

26 

4103 

42 

25556 

41 

BALANCE   LEDGER. 

The  Balance  Ledger  is  made  with  a  very  large  page — 18  x  23  inches  not  being  an  unusual  size — large 
enough  to  contain  the  accounts  of  forty  or  more  depositors  on  a  page.  The  left  hand  page  is  ruled  with 
a  column  for  the  names  of  depositors,  and  another  for  the  balances  of  depositor's  accounts,  on  the  extreme 
left;  and  the  remainder  of  the  page  is  divided  into  three  sets  of  money  columns,  each  set  containing  four 


THEORETICAL    AND    PRACTICAL    BOOK-KEEPING.  199 

columns.  The  left  hand  column  in  each  set  is  devoted  to  "Checks  in  Detail,"  the  second  to  "Total 
Checks,"  the  third  to  "Deposits,"  and  the  fourth  to  "Balances." 

The  riglit  liand  page  is  precisely  the  same  as  the  other,  excepting  that  the  column  for  the  depositor's 
names  is  placed  upon  the  extreme  right.  The  same  depositor's  names  are  written  on  both  pages,  and 
one  line  across  the  page  is  designed  to  contain  all  of  the  facts  regarding  the  account  of  the  depositoi 
whose  name  appears  upon  that  line  for  a  week  or  six  consecutive  days. 

At  the  close  of  banking  hours  each  day,  every  customer's  deposit  for  the  day  is  added  to  his  balance 
of  the  day  previous,  and  from  this  sum  the  aggregate  of  his  checks  is  deducted,  and  the  new  balance  is 
extended  into  the  "  Balance  "  column.  All  of  the  columns  are  then  footed,  excepting  that  devoted  to 
the  "  Checks  in  Detail,"  and  in  case  there  are  several  pages  of  accounts,  the  footings  are  carried  forward, 
so  that  the  final  footings  shall  exhibit  the  total  amount  of  the  checks  paid  and  the  total  amount  of 
deposits  received  for  the  day,  as  well  as  the  aggregate  of  the  balances  of  depositor's  accounts.  The 
footing  of  the  column  of  "Total  Checks"  is  carried  to  the  debit  of  Deposits,  on  the  right  hand  side  of 
the  Journal,  and  the  footing  of  the  column  of  "Deposits"  to  the  credit  of  Deposits,  on  the  left  hand 
side  of  the  Journal. 

At  the  end  of  each  week  every  depositor's  balance  must  be  carried  forward  to  a  new  page.  In  case 
of  very  active  accounts,  it  is  often  necessary  to  leave  two  or  three  lines  in  the  Ledger  to  accommodate 
the  Checks  in  Detail. 

ADVANTAGES  OF  THE  BALANCE  LEDGER. 

The  advantages  possessed  by  this  form  of  Ledger  are:  first,  the  paying  teller  can  more  readily  ascer- 
tain the  condition  of  a  depositor's  account;  second,  the  necessity  of  writing  the  deposits  on  both  sides 
of  the  Journal  every  day  checks  are  paid  and  deposits  received  is  obviated;  and,  third,  the  book-keeper 
lias  forty  or  more  accounts  before  him  at  once,  instead  of  being  required  to  consume  a  large  part  of  the 
time  turning  from  one  account  to  another. 

EMPLOYMENT  OF  THE  BALANCE  LEDGER  IN  THE  FOREGOING  SET. 

'  Write  the  names  of  the  depositors  in  alphabetical  order,  and  Certificates  of  Deposit,  Certified 
Checks,  Cashier  and  the  transient  accounts  beneath,  on  the  extreme  left  of  the  left  hand  page  and  on 
the  extreme  right  of  the  right  hand  page,  being  particular  to  get  each  name  on  the  same  line  on  each 
page.  'Enter  the  balance  of  each  account  in  the  "Balance"  column,  opposite  the  depositor's  name. 
'  Enter  each  customer's  checks  paid  during  the  day  in  the  "  Checks  in  Detail "  column,  opposite  his 
name,  *and  extend  the  aggregate  of  such  checks  to  the  "Total  Checks"  column.  'Enter  each  cus- 
tomer's deposit  in  the  "Deposits"  column,  'and  also  any  collection  made  for  him,  from  the  Collection 
Register  or  Collection  Tickler,  'and  the  proceeds  of  paper  discounted  for  him,  not  paid  in  cash,  from 
the  Discount  Register.  *  Enter  the  proceeds  of  discounted  paper  that  was  paid  in  cash  also  in  the 
"  Deposits"  column,  opposite  "Cashier  Account."  'Add  each  customer's  deposit  for  the  day  to  the 
last  balance  of  his  account,  and  from  that  sum  deduct  the  amount  of  his  checks.  '"  The  difference  will 
show  the  present  balance  of  his  account,  and  will  be  extended  into  the  next  "  Balance  "  column,  opposite 
his  name.     "  When  the  account  is  overdrawn,  enter  the  amount  of  the  "  overdraft "  in  red  inh. 

'MVhen  the  balances  of  all  the  accounts  have  been  entered  as  directed,  add  the  "Total  Checks," 
"Deposits"  and  "Balance"  columns. 

"  To  prove  the  correctness  of  this  work,  find  the  difference  between  the  total  checks  and  deposits 
for  the  day.  "  This  difference  will  equal  the  difference  between  the  total  balances  of  the  day  and  the 
total  balances  of  the  day  previous.  '*  If  the  "  Balance  "  column  contains  both  black  and  red  ink  entries, 
foot  first  the  black  and  then  the  red  ink  amounts,  and  place  the  footings  at  the  bottom  of  the  column 
in  corresponding  ink,  and  exhibit  the  difference  beneath;  which  difference  will  be  tlie  amount  due 
depositors. 

"  The  footing  of  the  "  Total  Checks "'  column  is  debited  to  deposits  in  the  Journal,  and  the  footing 
of  the  "  Deposits "  column  is  credited  to  deposits  in  the  Journal.  Since  there  is  only  one  entry  of 
Deposits  on  each  side  of  the  Journal,  the  special  columns  for  deposits  are  not  required. 

"  As  dejiositors  are  credited  in  the  Balance  Ledger  with  the  proceeds  of  paper  discounted  for  them, 
and  Deposits  account  is  credited  in  the  Journal  for  the  amount  with  the  deposits,  the  necessity  of  carry- 
ing the  other  results  of  the  Discount  Register  to  the  Journal  as  well,  instead  of  posting  them  direct  to  the 
Ledger,  will  be  apparent.  "  Bills  Discounted  should  therefore  be  debited  and  Collection  and  Exchange 
and  Discount  credited  in  the  Journal  each  day  for  the  footings  of  those  columns  in  the  Discount  Regis- 
ter, in  order  that  the  Journal  shall  show  the  correct  balance  of  cash. 


600 


THEOKETICAL    AND    PRACTICAL    BOOK-KEEPING. 

BALANCE  LEDGER. 


NAME. 

MONDAY,  JUNE  24,  18- 

TUESDAY,  JUNE  25,  18—. 

WEDNESDAY,  JUNE  28,  18-. 

Balance. 

Checks 
in  Detail 

Total 
Checks. 

Deposits 

Balance. 

Checks 
in  Detail 

Total 
Checks. 

Deposits 

Balance. 

Checks 
in  Detail 

Total 
Checks. 

Deposits 

Balance. 

An^lo,  James, 

10301 

K) 

673 
500 
397 

00 
84 

37 

1571 

44 
37 

75 

8730 

41 

1400 

71 

82 

1400 

6305 

53 

68 
27 

76 

92 
12 

7330 

41 

1000 
2500 

6o;t 

3000 

1741 
622 

42 

96 
12 

4103 

42 
08 

83 

1171 

55 

850196 

Burke,  Clias.  J. 

33465 

36 

6000 

3500 

35965 

36 

900 
3463 
1941 

dl616 
1500 

5162 

c856 

29659 

83 
.50 
82 

25556 

41 

Bingham,  Field  &  W. 

9231 

6000 

3221 

50 

3231 

3000 
2364 

221 

50 

Day,  Maxwell, 

fi619 

99 
57 
82 

1846 

8466 

74 

93 
112 

835 

18 
50 

1030 
5403 

10552 

63 

8188 
5467 

74 

Farnsworth,  L.  J. 

9106 

1214 

10320 

57 
82 
75 

1153 

42.50 

27 

35 
30 

4917 

30 

550 

30 

Jameson,  W.  F. 

13660 

12000 

13000 

dl994 

dl743 
3118 
0  910 

02 
36 
63 

57 

3654 

9673 

86 

75 

300 
1074 
1500 

83 

2874 

d36e4 
4325 

12338 

49 

Johnson  Mfg.  Co. 

16044 

,54 

4500 

4500 

17316 

2380 

19576 

21036 

92 

* 
Certificates  of  Deposit, 

3000 

3000 

3000 

3000 

35 

30 
09 

1500 

35 

25 
09 

1500 

1600 

Certified  Checks, 

37 
30 

364 

- 

1.500 

1.500 

80 

1500 

CO 

1000 

60 

1000 

Cashier  Account, 

448 

448 

d448 

1794 

1794 

dl794 

Tkansiknt  Accounts. 
Perry  &  Co.,  L.  W. 

364 

364 

- 



a 

Dunn  &  Cole, 

863 
918 

863 

863 

30 

918 

Lowe,  S.  H. 

918 

918 

94 
20&53 

25 

- 

Gray,  David, 

37 

30483 

94 

^177 

99 

94 

25 

233306 

19831 

221554 

41 

36111 

205996 

41 

- — 

25742 

208362 

17 

"^1 

1 

*  Several  accounts  are  here  omitted,  but  the  footings  at  the  bottom  include  the  results  of  the  accounts  omitted  as  well  as  those 
Illustrated. 

JOURNAL. 
MONDAY, 


Wayne  County  National,  Lyons,  211^ 

Norwich  National,  865™ 

George  K.  Warren  &  Co.,  Bath,  942" 

Bills  Discounted,  2500,  12000,  254018 

Discount,  83c  979 

Chemical  National, 

Deposits, 

Collection  and  Exchange, 

COLL.  &  KXCH. 

GKNEUAL. 

1 

.    7 
3 
9 

50 

35 
92 
19 
69 

211 

865 

942 

17040 

10 

9962 

19831 

22 

92 

70 
17 
18 
62 
95 
57 

22 

65 

05 

48887 

76 

THEORETICAL   ANB   tHACTIOATj   BOOK-KEEPING. 

BALANCE  LEDGER. 


501 


THURSDAY,  JUNE  2T,  18-. 

FRIDAY,  JUNE  28,  18—. 

SATURDAY,  JUNE  29,  18—. 

NAME. 

Cheeks 
liilk-tai 

Total 
.      Cheeks. 

Deposit* 

I,    Balance. 

Checks 
In  Detail 

Total 
.      Chocks 

Deposits. 

Balance 

Checks 
In  Dotal 

Total 
.     Checks 

Deposits. 

Balance 

2116 

(KiH 
1850 

1 
4 

1525  4. 

5 

6976 

51 

6978  5 

1 

1500 

6976  5 

1    Angle,  James. 

675 

675 

2250 

27131 

41 

365 
2000 
183  7 
675 

1 

32237 

1       2187 

55 

26095  2. 

i      1500 

d3243 
651 

50 
71 

28490  4( 

3    Burke,  Chas.  J. 

3750 

3750 

4831  1 

i      1302 

65 
86 

1640 

72 

2943  3' 

■       1000 

1000 

4000 

59433 

r     Bingham,  Field  &  W. 

1358  81 
5000 

i 

6256  81 

i        575 

2506 

4000 

6506  8( 

89  3f 
>        476  8, 

!        5459" 

r    dl841 

38 

7802  2' 

Day,  Maxwell. 

5487 

30 

74 
52 

562  85 

!        562» 

■        174 

80 

6079  2* 

327  91 
84  If 

i        412  0! 

dl277 

55 

84 
11 

5944  7J 

Famsworth,  L.  J. 

d4981& 
710 

18029 

63  41 
500 

563  44 

d3734 

81 
72 

2120111 

660 

21861  11 

Jameson,  W.  F. 

175 
86« 
1000 

) 

128141 

1900 

21665 

1500 
794  If 
162  3J 

2456  K 

d2452 

3500 

2.5161  71 

118  5( 

500 
1896  n 

2514  67 

d4790 
4942 

32379  9S 

Johnson  Mfg.  Co. 

1500 

1500 

- 

1500 

Certificates  of  Deposit. 

1000 

- 

37 

1000 

1000 

Certified  Checks. 

748  37 

748  37 

d748 

Cashier  Account. 

Transient  Accounts. 
Perry  &  Co.,  L.  W. 

Dunn  *  Cole, 

i5 

- 

liOwe,  S.  H. 

94 

94  25 

94  2J 

94  2c 

97 

Gray,  David. 

20502  87 

21933  44 

309792 

74 

13888  24 

24365 

^ 

220389  92 

11756  51 

27292 

235808  41 

20S 

Overdrafts  in  red  ink. 

1 

JOURNAL 

JUNE   24,  18—. 


Wayne  County  National,  Lyons,  423  3* 

genera  li. 

423 

34 

Farmers'  National,  Canton,  193*2  i;>i5 

1408 

42 

Traders'  National,  Kingston.  345^ 

345 

23 

Third  National  Newport,  583 ''^ 

583 

75 

Norwich  National,  91113 

911 

13 

Chemical  National, 

4129 

68 

Deposits, 

30483 

53 

Bills  Discounted, 

3750 

42035 

08 

CORPORATIONS. 


The  following  description  of  Corporations  and  explanation  of  the  books  of  record  and  of  account 
ordinarily  required  in  a  business  conducted  by  a  Corporation,  are  regarded  sufficient  to  enable  the 
learner  to  comprehend  the  requirements  of  such  a  concern.  It  is  not  deemed  necessary  for  the  pupil 
to  work  through  a  series  of  transactions,  as  has  been  the  practice  throughout  this  work,  but  the 
explanations  should  be  carefully  studied,  to  enable  him  to  pass  an  examination  upon  the  subject. 

DESCRIPTION  OF  CORPORATIONS. 

A  Corporation  is  an  artificial  person,  created  either  by  statutory  enactment  or  by  conforming  with 
existing  statutes. 

It  is  composed  of  individuals,  competent  to  contract,  united  under  a  corporate  name.  The 
members  of  such  bodies  succeed  each  other,  so  that  notwithstanding  the  change  of  the  individuals  who 
compose  it,  the  body  or  Corporation  remains  the  same;  and  for  certain  purposes  within  the  limit  of  its 
charter,  is  considered  as  a  natural  person.  A  Corporation  is  like  a  partnership  both  in  the  association 
for  the  aggregation  of  capital,  and  in  division  of  gains  and  losses;  but  differs  from  a  partnership  in  that 
while  a  partnershij)  is  purely  individual,  not  requiring  charter  authority,  a  Corporation  cannot  exist 
without  the  special  sanction,  nor  carry  its  purposes  into  effect  without  the  special  authority  of  the  laws 
of  the  land.  As  the  laws  governing  Corporations  differ  in  different  States,  prior  to  the  formation  of  a 
Cor])oration  the  statutes  of  the  State  in  which  such  Corjioration  seeks  to  do  business  should  be 
consulted. 

The  principal  classes  of  Corporations  to  be  treated  commercially  are  aggregate,  and  either  public, 
as  counties,  cities,  towns  and  villages,  or  private,  as  bank,  railroad  and  manufacturing  corj)orations. 

A  Corporation  is  formed  by  the  agreement  of  three  or  more  persons,  who  file  and  have  recorded 
with  the  Secretary  of  State  and  with  the  County  Clerk,  a  certificate  setting  forth  the  names  of  the 
incorporators,  the  name  of  the  incorporation,  amount  of  capital  stock  which  must  be  paid  in  money, 
the  character  of  the  enterprise,  time  of  continuance,  and  business  location;  this  done,  the  body  is 
incorporated.  Or  a  charter  may,  on  application,  be  granted  by  the  Legislature,  which  when  filed  with 
the  Secretary  of  State  constitutes  incorporation. 

While  the  laws  of  different  States  and  countries  widely  differ,  in  nearly  all  cases  the  rights  that 
inhere  in  Corporations  are  to  elect  offcers;  to  fill  vacancies,  thereby  ensuring  perpetuity  within  the  limit 
of  their  appointed  existence;  to  make  by-laws;  to  remove  officers  and  members;  to  receive  and  convey 
real  property;  to  sue  and  be  sued,  and  to  hold  property  as  trustees. 

On  all  matters  of  contract  for  the  acts  of  agents  and  for  taxes,_  the  liabilities  of  Corporations  and 
of  individuals  are  essentially  alike.  The  tendency  of  later  statutes  is  to  increase  the  individual 
responsibility  of  members  of  Corporations,  although  for  the  exact  measure  of  such  individual  responsi- 
bility in  any  instance,  the  local  statutes  should  be  consulted. 

Books  of  account  and  of  stock  must  be  kept  open  for  inspection,  and  reports  made  according  to 
law;  and  in  case  of  increase  or  decrease  of  capital  stock,  or  change  of  location,  a  certificate  setting  forth 
the  change  must  bo  filed,  accompanied  by  a  statement  of  the  resources  and  liabilities  of  the  Corporation. 

The  law  making  power  in  creating  a  corporation,  usually  reserves  the  right  of  modifying  its 
charter,  or  of  terminating  its  existence.  If  a  charter  be  repealed,  is  surrendered,  or  by  loss  of  integral 
parts  is  forfeited,  the  Corporation  becomes  extinct,  and  its  capital  and  debts  constitute  a  trust  fund  and 
pledge  for  the  payment  of  creditors,  and  a  court  of  equity  will  enforce  such  jiayment.  The  obligations 
of  corporate  contracts  are  no  more  impaired  by  the  extinguishment  of  the  Corporation,  than  are  those 
of  an  individual  by  the  death  of  that  individual. 


TttEORETJCAL    AND    PRACTICAL    BOOK-KEEPING. 


203 


RECORDS  OF  A  CORPORATION. 

The  books  of  account  of  a  Corporation  do  not  differ  materially  from  those  which  would  be  kept  by 
an  individual  or  partnership,  conducting  the  same  kind  of  business  as  that  carried  on  Ijy  the  Corpora- 
tion, except  that,  generally,  four  additional  auxiliary  books  are  required.  These  are  called  the  Sub- 
scription Book,  the  Minute  Book,  the  Stock  Ledger  and  the  Stock  Transfer  Book. 

The  following  brief  explanations  and  illustrations  of  these  books  will,  it  is  thought,  be  found 
sufficient: 

THE  SUBSCRIPTION   BOOK. 

This  is  simply  a  blank  book,  ruled  with  special  reference  to  receiving  the  subscriptions  of  those 
parties  desiring  to  become  share  holders  in  the  Corporation.  It  contains  generally  the  signature 
of  the  subscriber,  his  address,  and  the  number  of  shares  he  agrees  to  take.  The  form  given  below 
will  illustrate  its  priiici])al  features. 

SUBSCRIPTION    BOOK  OF  THE    HOPKINS  MANUFACTURING  CO.,   OF  CEDARVILLE,    N.  Y. 
Cajiital  Stock,  200,000.00.     In  2000  Shares  of  100.00  each. 

We,  the  undersigned,  by  affixing  our  signatures  hereto,  subscribe  for  and  agree  to  take  the  number 
of  shares  of  the  Capital  Stock  of  the  Hopkins  Manufacturing  Co.  placed  opposite  our  respective 
names,  at  their  par  value,  and  to  pay  for  the  same  in  such  installments  as  may  be  called  for  by  the 
Board  of  Directors,  and  uj)on  such  conditions  as  are  defined  in  the  By-Laws  of  said  Corporation: 


No.  of 

Par- 

DATE. 

SIGNATURE  OP  SUBSCKIBER. 

ADDKESS. 

Shares. 

Value. 

TOTAL. 

188- 

Jau. 

0 

Wm.  F.  Hopkins. 

Cedarville. 

300 

100 

30000 

C 

Orrin  F.  Hart. 

a 

350 

35000 

8 

Chas.  Gorres. 

a 

150 

15000 

8 

Alfred  Wriglit. 

C( 

200 

20000 

8 

Samuel  B.  Stephens. 

it 

200 

20000 

8 

Geo.  Ilartwell. 

a 

175 

17500 

8 

Frank  C.  Hopkins. 

Oak  hind. 

175 

17500 

11 

Jas.  W.  Laphani. 

Cedarville. 

150 

15000 

12 

Wm.  T.  Graves. 

it 

150 

15000 

12 

Harley  B.  Eaton. 

a 

150 

15000 

THE   MINUTE   BOOK. 

This  is  simply  a  record  book  in  which  is  entered  a  complete  history  of  the  proceedings  of  the 
Stockholders  and  of  the  Board  of  Directors  at  all  of  their  official  meetings. 

It  should  contain  the  date  of  the  meeting,  the  names  of  the  members  present,  and  an  explicit  and 
accurate  report  of  all  business  transacted.  The  record  should  be  signed  by  the  Secretary  and  attested 
by  the  President. 

THE  STOCK   LEDGER. 

This  book  exhibits  the  shares  of  Capital  Stock  held  Ijy  each  stockholder,  showing  the  install- 
ments paid  u])on  them,  and  any  transfers  of  stock  which  may  have  taken  ])lace.  The  payments 
of  installments  upon  subscrij>tions  are  posted  from  the  Cash  Book  and  the  transfers  from  the 
Transfer  Book  to  the  Stock  Ledger.  The  following  will  indicate  the  usual  form  for  the  entries  in  the 
Stock  Ledger: 

WILLIAM    F.   HOPKINS. 


188- 

Mar. 

10 

June 

30 

II.  B.  Eaton,  50  Sh, 
Balance,  250  Sh. 


1 

5000 
25000 

188- 
Jan. 
Feb. 

13 

1 

30000 

July 

1 

1st  In.,  50^.  .300  Sh. 
2d  In.,  50^.  300  Sh, 


250  Shares. 


1 
20 


204 


THKORETICAL    AND   PRACTICAL    BOOK-KEKPING. 
HARLEY   B.  EATON. 


188- 

Jan. 

12 

Feb. 

4 

Mar. 

10 

Jnly 

1 

1st  In.,  50^  150  Sh. 
2iidIu.,50^150Sh. 
W.F.Hop'ns,  50Sh. 

200  Shares. 


30000 


In  some  instances  the  payment  of  subscriptions  is  made  in  numerous  installments  and  not 
infrequently  a  considerable  length  of  time  elapses  before  the  entire  subscription  is  paid.  Transfers 
of  stock  may  in  the  meantime  take  place,  of  which  a  record  sliould  lie  made  ujion  tlie  l)ooks  of  the 
company. 

The  following  form  of  Stock  Ledger  lias  been  found  under  sucli  circumstances  to  be  both  concise 
and  convenient. 

JOHN    M.   SMITH. 


188- 
Jan. 

Feb. 

March 

12 

19 
10 
25 
1 
15 

Cash,  15  ^  on  300  Sh.,  1st  Call, 

Transferred  to  Wm.  11.  Brown  50  Sh.,  less  15  ^  paid  on  1st  Call, 

Cash,  20^  on  250  Sh.,  2nd  Call, 

Cash,  25^  on  250  Sh.,  3rd  Call, 

Transferred  to  \V.  II.  Brown  50  Sh.,  less  CO  ^  pd.  on  1st,  2d,  &  3d  Calls, 

Cash,  40  ^  on  200  Sh.,  4th  Call, 

200  Shares, 

1 

4500 
4250 
5000 
6250 
2000 
8000 

30000 

July 

1 

20000 

WILLIAM    H.   BROWN. 


188- 

Jan. 

12 

Cash,  15  ^  on  150  Sh.,  1st  Call, 

2250 

19 

From  Jno.  M.  Smith,  50  Shares  with 

15  fo  of  1st  Call  ])aid. 

750 

Feb. 

11 
25 

Cash,  20^  on  200  Sh.,  2nd  Call, 
Cash,  25  ^  on  200  Sh.,  3d  Call, 

4000 
5000 

March 

2 
15 

1 

From  Jno.  M.  Smith,  50  Shares  with 
Cash,  40^  on  250  Sh.,  4th  Call, 

250  Shares, 

C0<^  of  1st,  2nd  &  3d  (Jails  ])d., 

3000 
10000 

25000 

July 

25000 

Where  the  payment  of  subscriptions  is  made  in  several  installments,  the  custom  is  generally  to 
issue  what  is  called  "  Installment  Scrip,"  to  be  exchanged  eventually  for  Certificates  of  Stock. 
The  following  will  illustrate  the  forms  of  Installment  Scrip  and  Certificate  of  Stock. 


INSTALLMENT  SCRIP. 


.  /. 


pSaOC.  Shate^  iOO, 

Of  $ioo  Each. 

Hopkins  Manufacturing  Company, 

OF  CEDBRVIUE,  N.  Y. 


SO    ^^  ««*»/ 


*«*  ^^««Jci'y*.«  ^«»J 


oi   tf«*^*z-*. 


'^^^.  .^.  ^^.i^.-*. 


\apitai  ^^iwk  o/  ihe  'Safikmi  "^manufmlutin^  Wo. 


i^^^a 


(i^tt-tr^^  ^'fi'^-ieii^  ■eti't'  ■I'e4^if9\ 


?<»*K^-i?Jff**  -i^et^ 'H-»  o*  -fA'e^ 


€^ i;t.-yv€t  d e^i  ■€^/ir€i^'l  ^v-i.  -/t-P-y^i-  -at    -/itti-  ft,iJ-t-a,^ 


't'H-e-  ■t€i^'yi4  -o- 


rf**^rf( 


<i-e4^/i'Ji^*t. 


•■  *<**  ■#***»*•»*. 


'^AoA.      Y.     -^^-fffi-.   Secretary.  &ltt'>t  ^^f  J^at/,  Preaidtnt. 


THEORETICAL    AND    PRACTICAL    BOOK-KEEPING. 


205 


SBUkRES,  3va. 
01OO  K£tob. 


Hopkins  Manufacturing  Company, 


■'ffrn.    .^.    .jf//„AAtnA.  \  '^/tai.    .^aiiei,   Secretary. 


Diltn  c::^:  .:3^t^;  PresldOBt. 


THE  TRANSFER   BOOK. 

This  book  is  used  in  transferring  Stock  Ccrtiflciites  from  one  sliareholder  to  another. 

It  generally  consists  of  printed  forms  which  are  filled  out  in  accordance  with  the  conditions  of  the 
transaction.  It  is  customary  to  have  these  certificates  so  worded  as  to  be  transferable  only  on  the 
books  of  the  Compfiny,  the  object  being  to  know  at  all  times  who  the  shareholders  are.  The  following 
will  serve  to  illustrate  the  form  of  the  Transfer  Book. 


LF, 


SO  WihateL 


&^ii<Ut^ 


^at^anj    tt^C   litiA    i.t-a./i^f'     itC'lc-    ^t'^vt^  i^nt&te4l  t^^l^    V^tJ.ft^ 


Ba^itul  Stntk  of  the  Mopkini  J(taniif<iduiin§  iBomfianij, 


WITNESS, 


In  opening  the  books  of  a  Stock  Company,  each  stockholder  should  be  credited  in  the  Stock 
Ledger  for  the  amount  of  stock  ho  has  actually  jiaid  for,  and  Capital  Stock  account  should  be  credited 
in  the  main  books  for  the  aggregate  of  such  payments.  Cash  account,  of  course,  being  debited  for  the 
same  amount.     The  only  record  of  stock  subscriptions  is  contained  in  the  Subscription  Book. 

When  stock  is  transferred,  the  party  making  the  transfer  is  debited  in  the  Stock  Ledger  for  the 
par  value  of  the  stock  transferred,  and  the  party  to  whom  it  has  been  transferred  is  credited  for  the 
same  amount,  no  entry  being  required  in  the  main  books. 

The  jirofits  of  the  business  are  divided  among  the  stockholders  in  the  form  of  a  dividend.  All 
accounts  showing  profits  and  losses  are  closed  into  Loss  and  Gain  account,  and  that  account  closed 
into  Dividend  account  and  Undivided  Profits  account. 

The  Board  of  Directors  determine  the  amount  of  the  profit  to  be  divided  among  the  stockholders, 
usually  such  an  amount  as  will  make  an  even  per  cent,  upon  the  Capital  Stock.  Such  amount  is 
charged  to  Loss  and  Gain  account,  and  credited  to  Dividend  account.  The  balance  of  the  profit  is 
charged  to  Loss  and  Gain  account  and  credited  to  Undivided  Profits  account.  When  the  dividend  is 
paid  to  the  shareholders.  Dividend  account  is  charged  and  Cash  account  credited. 

In  all  other  particulars  the  books  of  a  Stock  Company  need  not  difEer  from  those  of  au  individual 
or  a  partnership. 


OOn  THEORKTIGAL    AND    PRACTICAL    BOOK  KKEPING. 

BUSINESS  FORMS. 

LETTER  INCLOSING   REMITTANCE. 


FULLER  &  HENDERSON, 

■WI3:01_.ES-A.XiE 


GROCERS  SUNDRIES. 

les  UAIH  STBSZT. 


aoeaisTiB,  6U.j//>^- 


^^-u^ 


LETTER  OF    RECOMMENDATION. 

Cakbondale,  Aug.  31,  188-. 
To  whom  it  may  Concern: 

We  take  pleasure  in  stating  that  the  bearer,  Mr.  Ralph  E.  Rogers,  who  has  been  employed  by 
US  during  the  past  year,  is  in  all  respects  a  competent  and  faithful  book-keeper,  and  a  young  man 
of  the  highest  qualities  of  head  and  heart. 

Mr.  Rogers  severs  his  connection  with  our  house  to  seek  a  more  congenial  climate,  and  leaves 

bearing  with  him  the  highest  regard  of  all  with  whom  he  has  been  associated. 

Respectfully, 

BEDELL  &  LU8K. 

4 

LETTER    ORDERING    GOODS. 

ROCHESTEK,    Oct.    4,    188-. 

Mk.  Geo.  P.  Osgood, 

Chicago. 

Dear  Sir:     Please  ship  us  as  soon  as  possible,  per  L.  S.  &  M.  S.  R.  R.  and 

N.  Y.  C.  &  II.  R.  R.  R.,  the  following: 

20  doz.  2-hoop  Pails;  15  doz.  C.  Pounders;  35  doz.  R.  Pins;  10  doz.  N.  D.  Z.  Wash  Boards;  15 

doz.  13-in.  B.  Bowls;  5  doz.  No.  3  Wood  Scoops;  25  Nests  P.  Pails;  5  doz.  W.  Shovels. 

Resi)ectfully, 

FULLER  &  STUDENT. 


THEORETICAL    AND    PRACTICAL    BOOK-KEEPING.  9,07 

BUSINESS    FORMS. 

INVOICE   OF   SHIPMENT. 
Invoice  of  Merchandise  shipped  to  A.  G.  Niles,  Evansville,  to  be  sold  on  our  account  and  ri'sk. 


200  bu.  Potatoes, 
Paid  Cartage, 

Galesburg,  Sept.   15,  188-. 


@  65c. 


charges: 


ACCOUNT  OF  SALES. 
Sales  of  600  bu.  Ked  Wheat,  on  «/<;  of  Foster  Bros. 


188- 
Sopt. 

0 
12 

6 
12 

Sold  for  cash, 

200  bu.  Ked   Wheat, 
Sold  for  cash, 

300  bu.  Red  Wheat, 

Paid  Freight, 
Storage,  2|c.  per  bu., 
Commission,  2  ^  of  Sales, 

Foster  Bro's  Net  Proceeds, 
E.  E. 

GrALESBURG,    Sept.   12,    188-. 

charges: 

HERBERT   G. 

@  1.37i 
@  1.37i 

50. 

12.50 

13.73 

274 
411 

50 

75 

G86 
76 

25 
23 

b- 

WILLIAMS. 

610 

02 

g".|^  g  No.  1867. 

ft)   O   C   i'  .         ^^ 

^  a  a>  5(J  ^     r' 

xdj^i  'B  '^     I'o  Hkoadway  Bank,         \ 

l-S-g  «  New  York,  f 


BANK    DRAFT. 
MANUFACTURERS   AND    TRADERS   BANK, 

or   MINNEAPOLIS. 


$96.38.  Minneapolis,  April  12,  188--. 

Pay  to  the  order  of  Erastus  W.   Cleveland,  Ninety-six  and  ^y^  Dollars. 

J.  K.  COMPTON, 

Casiiii ; 


FORMS  OF 

INDORSEMENT. 

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k  Dratt  sent  to  S.H. 
Oct.  24,  pag-r  140.] 

order  of  Scovel 
FULLER  &  ST 

lent  Indorsed  across 
note  of  Oct.  28,  page 

ived  on  the  wi 
188-,  Two  Hun 

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208 


THEORETICAL    AND    PRAOl'ICAL    BOOKKEEPING. 


BUSINESS    FORMS. 

BILL. 


FULLER  &  HENDERS9X, 

A-ISTD 

GROCERS'  SUNDRIES, 

165  UAIH  STREET. 


SQCHiSTEB," 


://v^ 


^OUI 


FOLIO 


SALESMAN 


(^{■■7'7'if^i^-c-e'^ 


FULLER  &  HENDERSON. 


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^      $1475.54. 


O 


CERTIFIED    CHECK. 

Syracuse,  July  10,  188-. 

CENTRAL  CITY   BANK, 

Pay    to    Bliss,  Goodrich   &    Co.,   or    order,    Fourteen    Hundred    Seventy-five  and   ^ 

Dollars. 

No.  602.  EVANS  &  KINGSBURY. 


CERTIFICATE   OF    DEPOSIT. 
1500.00.  Detroit,  May  9,  188-. 

SECOND   NATIONAL  BANK.    • 
Samuel  Roberts,  Jr.,  has  deposited  in  this  Bank  Five  Hundred  Dollars,  payable 

to  himself,  or  order,  on  return  of  this  Certificate.  „,„»,»  xt 

GEO.  HINMAN, 

Cashier- 


THEORETICAL    AND    PKACTICAL    BOOKKEEPING. 


309 


BUSINESS    FORMS. 


JOINT  NOTE. 
1275.  Cedar  Falls,  Iowa,  Oct.  1,  188-. 

Sixty  days  after  date,  we  promise  to  pay  Orlando 
Stevens,  or  order.  Two  Hundred  and  Seventy-five 
Dollars,  for  value  received,  ct  Farmers'  Bank. 

E.  F.  HAYDEN. 
GEO.  N.  BROWN. 

JOINT  AND  SEVERAL  NOTE. 
$1500.  Beightojt,  III.,  June  4,  188-. 

One  year  from  date,  for  value  received,  we,  or 
either  of  us,  promise  to  pay  to  the  order  of  Henry 
H.  MofEatt,  Fifteen  Hundred  Dollars. 

FRANK  S.  nORTON. 
M.  BORTELLE. 

NON-NEGOTIABLE  NOTE. 
$100.  Trentok,  K  J.,  May  15,  188-. 

On  demand,  I  promise  to  pay  Lyman  S.  Barber, 
One  Hundred  Dollars,  for  value  received,  with 
interest. 

C.  C.  BARNARD. 


DRAFT  (Time  from   Sight). 
*     (See  enerraved  form  on  page  41.) 

^2000.  Baltimore,  Oct.  28,  188-. 

At  ten  days'  sight,  pay  to  Eric  Hunter,  or  order, 
Two  Thousand  Dollars,  value  received,  and  charge 
the  same  to  my  account. 

To  J.  y.  rrKSTWORT!!,  SIMON  DUNCAN. 

Albany,  N.  Y. 

DRAFT  (Time  from   Date). 
$300.  Hamilton,  Sept.  5,  188-. 

Thirty  days  after  date,  pay  to  J.  C.  Goodrich, 
or  order.  Three  Hundred  Dollars,  value  received, 
and  charge  the  same  to  my  account. 
To  Crowley  &  Leayitt,        ALFRED  W.  HOLLEY. 
Evaasville,  Pa. 

DRAFT  (At  Sight). 
$100.  Oleax,  Feb.  17,  188-. 

At  sight,  pay  to  the  order  of  Orrin  Greenleaf, 
One  Hundred  Dollars,  value  received,  and  charge 
the  same  to  our  account. 


To  Park  Bank, 

New  York. 


WELLSLEY,  HOYT  &  CO. 


BUSINESS 

RECEIPT  (To  Apply  on  Account). 
$175.25.  Philadelphia,  Jan.  6,  188-. 

Received  of  Wm.  De  Long,  One  Hundred  and 
Seventy-five  -fj^  Dollars,  to  apply  on  account. 

CHAS.  G.  APGAR 

RECEIPT  (In  Full  of  Account). 
$200.  CoBURG,  0.,  Mar.  IG,  188-. 

Received  of  Walter  Williams,  Two  Hundred 
Dollars,  in  full  of  account  to  date. 

SMITH  &  WEIGHTMAN. 

RECEIPT  (Payment  on   Note). 
$160.  Richfield,  Pa.,  Sept.  27,  188-. 

Received  of  Elihu  Biddlecom,  One  Hnndrcd 
and  Fifty  Dollars,  to  apply  on  his  note,  in  our 
favor,  dated  Mar.  27,  188-. 

GEO.  T.  CREED  &  CO. 

DUE   BILL  (Payable  in  Goods). 
$25.  Sardinia,  N.  Y.,  Aug.  1,  188-. 

Due  R.  F.  Bainbridge,  Twenty-five  Dollars,  pay- 
able in  goods  from  our  store. 

EATON.  CROSS  &  CO. 


FORMS. 

DUE   BILL  (Payable  in   Money). 
$47.64.  Smith's  Hollow,  Dec.  9,  188-. 

Due  Cha's  Parker,  or  order,  on  demand,  Forty-' 
seven  and  ^„V  Dollars.  W.  II.  GORDON. 

ORDER  (To  Apply  on  Account). 
$50.  Chelsea,  Mich,  Apr.  10,  188-. 

French  &  Hagerman,  149  Lagrange  Street,  will 
jjlease  pay  the  bearer  Fifty  Dollars,  and  charge 
the  same  to  my  account.  D.  W.  EVEREST. 

ORDER  (Payable   in   Goods). 

Burlington,  Kas.,  Dec.  6,  188-. 
E.  &  S.  Campbell  will  please  deliver  to  bearer 
groceries,  not  exceeding  in  amount  Twenty-five 
Dollars,  and  charge  the  same  to  me. 

RALPH  BARTON. 

INDIVIDUAL  NOTE. 

(See  engraved  form,  on  page  21.) 

$350.  Rochester,  X.  Y.,  Feb.  2,  188-. 

Six  days  after  date  I  promise  to  pay  W.  C. 
Cooper,  or  order.  Three  Hundred  and  Fifty  Dol- 
lars, value  received. 

Due  Feb.  11.  188-.  STUDENT. 


210 


THJEOitETICAL   AND   PRACTICAL    BOOK-KEEPlNO. 

BUSINESS    FORMS. 

BILL 


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INDEX. 


Account  Sales,  explanation  of 55,  56,  57 

forms  of ---  207 

Bonk,  rule  for  journalizing 27 

examples  in 28 

checks,  form  of- 28,  208 

draft,  form  of 207 

Balance  Sheet,  guide  for 32 

form  of 34 

Bill  Book,  explanation  of.  .  - 67 

form  of 66 

Bill,  forms  of _ 208,  210 

Commission,  explanations  and  examples 55-57 

Sales  Book,  Cash  Book  and  Journal  as  principal 

books _. 117-125 

Consignments,  rules  for  journalizing 55 

examples  in  journalizing _  56-57 

Cash  Book,  explanation  of 67 

form  of 64-65 

posting  from —     69 

Cash  Method,  explanation  of 109-112 

form  of  Cash  Book.. 110-111 

Check  Sheets,  explanation  of  and  form  for 134 

Certificate  of  Deposit,  form  of 208 

Draft,  explanation  of 41 

forms  of 41,  79 

rules  for  journalizing 41-42 

examples  in  journalizing .42-44 

Due  Bill,  payable  in  goods... 161 

payable  in  money 161 

Errors  in  Trial  Balance,  how  found 21 

Envelope,  form  of 80 

Executor  of  a  Will,  books  of 99 

Inventory,  explanation  of ^ 31 

liability 67 

Interest,  how  computed,  365  days  basis 25 

how  computed,  360  days  basis 68 

time  for,  how  found 51 

on  partners'  accounts 141 

Indorsement,  forms  of 207 

Journalizing,  general  rules  for 6 

special  rules  for. 6 

examples  in 7-12 

directions  for 16 

Journal,  combined  with  Day  Book,  form  of 45 

explanation  of 45 


Ledger,  rules  for  closing 35 

guide  for  closing 36 

closed  form  of 88 

partially  closed 48-49 

closed  directly  to  proprietor's  account 70 

Letters,  forms  of 80,  206 

Miscellaneous  Accounts,  form  of 108 

Manufacturing,  explanation  of  books  used 151 

forms  of  books  used 152-153 

Note,  ordinary  promissory,  form  of 21 

joint 209 

joint  and  several 209 

non-negotiable 209 

Order,  payable  in  money. 209 

payable  in  goods 209 

Posting,  explanation  of 17 

guide  for 17-18 

with  Ledger  explanations 64-65,  69 

Partnership,  explanation  of 44 

profits,  division  of 48 

interest  on  partners'  accounts 141 

Protest  Fees,  how  charged. 52 

Petty  Ledger,  explanation  of 103 

form  of 106 

Receipt  for  payment  on  accotmt 209 

for  payment  on  note 209 

Retail  Business,  explanation  of  books  used 143 

forms  of  books  used 144-147 

inventories,  how  treated 150 

Shipments,  rules  for  journalizing 55 

examples  in  journalizing 55-56 

inventory  of 60 

invoice  of 207  . 

Single  Entry,  explanation  of 81 

changing  to  Double  Entry 85 

CashBook 89 

Special  Column  Journal,  explanation  of 93 

form  of 94-98 

Trial  Balance,  explanation  of 20 

errors  in 21 

Ledger  balances 40 

continued  form . 185 

Wholesale  Business,  explanation  of  books  used 128 

forms  of  books  used 128-132 


INDEX  TO  BANKING  AND  CORPORATIONS. 


Banking  Books,  description  of 159-160 

Balance  Ledger,  description  of 199 

advantages  of... 199 

form  of 200-201 

Collection  Register,  form  of 195-196 

Collection  Tickler,  form  of 197 

Corporations,  description  of 202 

records  of 203 

forms  of  books  used 203-205 

Division  of  Profits. 182-183,205 

Discount  Register,  form  of 190-191 


Deposit  Ledger,  balances,  Jvme  15. 161 

how  proved. 182 

forms  of 198,  200,  201 

Discount  Tickler,  form  of 196 

General  Ledger,  balances,  June  15 161 

how  proved... 182 

Journal,  form  of. 184-189 

Memoranda  of  Business.. 165-183 

New  York  Draft  Register,  form  of 192-193 

Organization  of  Banks 158 

Statement,  June  29 182 


APPENDIX. 


SUPPLEMENTARY   EXERCISES. 

The  following  transactions  are  designed,  primarily,  to  afford  additional  drill  in  determining  the 
proper  debits  and  credits  in  recording  business  transactions,  and  may  bo  performed  npon  pajjcr  or  used 
as  exercises  for  class  drill  in  the  elements  of  bookkeeping.  The  latter  plan  will  be  found  productive  of 
most  excellent  results,  and  is  recommended  by  t!ie  authors,  as  it  adds  the  aid  of  tlie  teacher  to  tlie  effort 
of  the  pupil,  thus  securing  to  the  pupil  thorough  knowledge  in  the  shortest  possible  time.  It  is 
advised  that  those  pupils  who  are  engaged  upon  a  particular  part  of  the  work  in  bookkeeping — initiatory, 
intermediate  or  advanced — be  taken  in  classes  into  a  recitation  room  and  required  to  give  the  debits  and 
credits  of  all  parties  in  the  transactions  in  this  work  that  are  of  tlie  same  general  character  as  those 
upon  which  they  are  engaged  at  their  desks.  In  addition  to  the  entries  of  all  parties,  it  is  recom- 
mended that  the  pupils  be  required  to  give  the  forms  of  all  commercial  paper  introduced,  with  their 
proper  indorsements.  It  is  believed  that  this  class  drill  will  rivet  the  principles  of  debit  and  credit, 
and  the  forms  and  requisites  of  commercial  paper  upon  the  mind  of  tlie  jjupil  as  no  other  process  can 
do,  and  will  effect  a  great  saving  of  time  and  labor  upon  the  part  of  the  teacher 

Such  class  work  should  closely  resemble  the  following: 

January  8.  Bought  of  H,  C.  Franklin,  Chicago,  on  "/c,  at  30  days,  200  bbls.  Pork,  @  13.00, 
2400.00. 

Ques.     What  should  be  your  debit  and  credit  for  this  transaction,  and  why  ? 

Ans.  Mdse.  should  Ijc  debited  because  merchandise  has  been  bought — comes  into  my  possession; 
and  H.  C.  Franklin  should  be  credited,  because  I  have  become  indebted  to  him. 

Ques.     What  debit  and  credit  will  Franklin  make,  and  why  ? 

Ans.  He  will  debit  me,  the  purchaser,  because  I  have  become  indebted  to  him,  and  will  credit 
Mdse.  because  he  lias  disposed  of  merchandise. 

Ques.  What  entries  will  you  make  thirty  days  hence,  upon  payment  in  cash  of  the  amount  due  H. 
C.  Franklin,  and  why  ? 

Ans.  Debit  H.  C.  Franklin,  because  I  have  got  out  of  his  debt,  and  credit  Cash  because  I  lyivc 
paid  out  cash. 

Ques.  What  entries  will  H.  C.  Franklin  make  upon  receiving  from  you  cash,  in  settlement  of 
your  account,  and  why  ? 

Ans.  He  will  debit  Cash,  because  he  has  received  cash,  and  credit  me,  because  I  have  got  out  of 
his  debt. 

Again,  April  3,  bought  of  Granger  &  Co.,  Minneapolis,  2000  bbls.  Flour,  @  5.25  per  bbl., 
10500.00.  Gave  in  payment  our  clieck  on  German-American  Bank  for  4000.00.  J.  C.  Keid's  note, 
5000.00,  discount  to  maturity  allowed  Granger  &  Co.,  72.50,  and  cash  for  balance,  1572.50. 

Ques.     What  debits  and  credits  will  you  make  for  this  transaction,  and  why  ? 

Ans.  Debit  Flour,  because  flour  has  been  purchased;  debit  Discount,  because  discount  has  been 
allowed  Granger  &  Co.;  credit  Bills  Eeceivable,  because  J.  C.  Reid's  note  has  gone  out  of  our  posses- 
sion; and  credit  Cash  for  the  amount  of  the  cash,  because  we  have  paid  out  cash;  and  credit  German- 
American  Bank,  because  we  have  drawn  a  check  on  them. 

Ques.     What  entries  will  Granger  &  Co.  make,  and  why  ? 

Ans.  Debit  Bills  Receivable,  because  J.  C.  Reid's  note  has  been  received;  debit  cash  for  the 
amount  of  the  check  and  currency,  because  so  much  cash  has  been  received;  credit  Flour,  because  flour 
has  been  sold;  and  credit  Discount  because  discount  has  been  allowed  them. 

Ques.     What  entry  will  the  German-American  Bank  make  when  the  check  is  paid,  and  why  ? 

Debit  Preston  &  Co.,  makers  of  the  check,  because  the  check  is  drawn  by  them — lessening  their 
deposit  that  amount — and  credit  Cash  because  cash  has  been  paid  out. 


11  THEORETIOAL    AND    PRACTICAL    BOOK-KEEPING. 

Ques.     Give  the  form  of  J.  (J.  Keid's  note  as  originally  received  by  B.  F.  Preston. 
Ans. 

5000.00.  ,  Mnrch  1,  18-. 

July  1,  after  date,  I  promise  to  pay  B.  F.  Preston,  or  order.  Five  Thousand  Dol- 
■  lars,  at  First  National  Bunk,  value  received. 

J.  C.  REID. 
Ques.     What  will  be  necessary  for  B.  F.  Preston  to  do  upon  investing  that  note  in  the  business  of 
Preston  &  Co.  ? 

Ans.     Write  his  name  on  the  back  of  the  note,  or  write.  Pay  Preston  &  Co.,  or  order,  and  sign 
his  name. 

Ques.     In  case  the  latter  form  is  adopted  how  will  the  firm  of  Preston  &  Co.  transfer  it  to  Granger 
S;  Co.  ? 

Ans.     They  will  write  on  the  back,  under  the  present  indorsement,  the  firm  name,  or  Pay  Granger 
&  Co.,  or  order,  and  add  the  firm's  signature. 

•  Ques.     Give  the  form  of  the  check  on  German-American  Bank  on  April  3. 
Ans. 

4000.00.  ■  ., ,  Aprils,  18— . 

German-American  Bank. 
Pay  to  Granger  &  Co.,  or   order,  Four   Thousand   Dollars. 

No. PRESTON  &  CO. 

JANUARY. 

1.  The  Student  commenced  business  this  day,  and  invested  cash,  5000.00. 

2.  Bought  for  cash  of  E.  H.  Fellows;  Albany,  100  bbls.  Flour,  @  8,  800.00. 

3.  Sold  W.  H.  Stern,  Baltimore,  on  afc,  25  bbls.  of  Flour,  @  10,  250.00. 

4.  Sold  for  cash  to  S.  B.  Alverson,  New  York,  50  bbls.  of  Flour,  @  9.50,  475.00. 

7.  Received  cash  of  W.  H.  Stern,  to  apply  on  a/c,  100.00. 

8.  Bought  of  II.  C.  Franklin,  Chicago,  on  "/c,  at  30  days,  200  bbls.  Pork,  (^  12,  2400.00. 

9.  Bought  of  P.  Armour  &  Co.,  for  cash,  100  bbls.  Lard,  @  25,  2500.00. 
12.  Sold  Jas.  Garrison,  on  %  50  bbls.  Pork,  @  15.00,  750.00. 

17.  Sold  H.  D.  Jones,  on  %  50  bbls.  Lard,  @  27,  1350.00. 

19.  Bought  of  A.  P.  Barnes,  on  "fe,  200  bbls.  Flour,  @  7.50,  1500.00. 

21.  Sold  for  cash,  50  bbls.  Lard,  @  26.75,  1337.50. 

23.  Sold  W.  H.  Stern,  on  o/c,  100  bbls.  Flour,  @  8.25,  825.00, 

25.  Received  cash  of  II.  D.  Jones,  on  «/c,  1000.00. 

27.  Sold  for  cash,  75  bbls.  Flour,  @  8.10,  fi07.50. 

29.  Bought  for  cash,  200  bbls.  Flour,  @  7.25,  1450.00. 

31.  Paid  A.  P.  Barnes  1000.00,  on  «/c. 

Inventory— 250  bbls.  Flour,  7.25     -        - 1812.50 

150     "      Pork,  12.00         -         .......     1800.00 

3612.50 

Cash        ...        - 2700.00 

Net  Gain 557.50 

FEBRUARY. 

1.  Increased  my  capital  by  an  additional  investment  of  3000.00. 

2.  Bought  of  Johnson  &  Co.,  on  my  note  at  15  days,  100  bbls.  Salt,  @  1.25,  125.00. 
4.     Sold  D.  B.  Davis,  on  his  note  at  10  days,  50  bbls.  Pork,  @  13.50,  675.00. 

6.  Received  of  W.  H.  Stern  his  note,  at  10  days  in  full  of  "/c,  975.00. 

7.  Paid  H.  C.  Franklin  2400.00,  in  full  of  account. 


THEORETICAL   AND   PUACTICAL    BOOK-KEKPING.  Ill 

8.  Sold  for  cash,  50  bbls.  Suit,  @  1.60,  75.00. 

10.  Sold  Jas.  Garrison,  on  "jc,  50  bbls.  Pork,  13.75,  687.50. 

12.  Bought  of  P.  Armour  &  Co.,  for  cash,  50  bbls.  Lard,  @  24.00,  1200.00. 

14.  Eeccived  cash  of  Jas.  Garrison,  1000.00  on  "/c. 

17.  D.  B.  Davis  has  paid  his  note  of  4th  instant  in  cash,  675.00. 

18.  Sold  Jas.  Garrison,  on  "jc,  25  bbls.  Lard,  @  26.00,  G50.00. 

19.  W.  II.  Stern  has  paid  his  note  of  6th  inst.  in  cash,  975.00. 

20.  Paid  our  note  of  2d  inst.  in  cash,  125.00. 

22.     Sold  James  Payne,  on  his  note  at  10  days,  50  bbls.  Pork,  @  13.25,  662.50. 
24.     Bought  of  E.  B.  Ashley  &  Co.,  on  my  note  at  30  days,  with  interest,  100  bbls.  Pork,  @  11.50, 
1150.00. 

26.      Sold  for  cash,  25  bbls.  Lard,  @  27.00,  675.00. 

28.     Bought  of  P.  Armour  &  Co.,  on  my  note  at  30  days,  100  bbls.  Lard,  @  23.50,  2350.00. 

Inventory— 250  bbls.  Flour,  @    7.25, 1812.50 

100     "     Pork,    @  11.50, 1150.00 

100     "     Lard,    @  23.50, 2350.00 

50     "     Salt,     @    1.25, 62.50 

5375.00 

Net  Gain, 362.50 

Cash, 5445.00 

MARCH. 
1.     Paid  two  months'  rent  of  store  in  cash,  200.00. 

3.     Sold  Jas.  Garrison,  on  his  note  at  10  days,  with  interest,  200  bbls.  Flour,  @  8.00,  1600.00. 
5.     Paid  clerk's  salary  for  two  months,  in  cash,  100.00. 
7.     James  Payne  has  paid  his  note  in  cash,  662.50. 

9.  Bought  of  James  Willis  ou  our  acceptance  at  30  days,  payable  at  German-American  Bank,  500 
bbls.  Flour,  @  7.00,  3500.00. 

11.  Sold  C.  JI.  Benton,  on  his  acceptance  at  10  days,  payable  at  Third  National  Bank,  200  bbls. 
Flour,  @  7.75,  1550.00. 

13.  Bought  of  J.  "W.  Whitney,  on  our  note   at  30  days,  payable  at  German -American  Bank,  with 
interest,  ^00  bbls.  Salt,  @  1.25,  250.00. 

15.  Sold  H.  L.  Haskins,  on  his  check  on  First  National  Bank,  200  bbls  Flour,  @  7.80,  1560.00. 

16.  James  Garrison  has  paid  his  note  of  1600.00,  due  to-day,  with  interest,  3.47. 

18.     Paid  our  acceptance  due  April  11th,  3500.00,  in  cash,  less  discount  for  time  it  has  yet  to  run. 
Discount,  24  days,  14.00. 

20.     Sold  S.  G.  Davis,  on  his  note  at  30  days,  payable  at  Merchants'  Bank,  75  bbls.  Lard,  (S  24.50, 
1837.50. 

22.     Sold  M.  J.  Iliggs,  ou  his  check  on  Merchants'  Bank,  50  bbls.  Pork,  @  12.25,  612.50. 

24.     G.  M.  Barton  has  paid  his  acceptance  of  lltli  inst.,  1550.00,  by  his  check  on  Third  Niitional 
Bank. 

26.     S.  G.  Davis  has  paid  his  note  of  20th  inst.,  1837.50,  less  discount  to  maturity — 27  days — by  his 
check  on  Merchants'  Bank.     Discount,  8.27;  amount  of  check,  1829.23. 

28.  Bought  of  P.  Armour  &  Co.,  on   our  acceptance  at  30   days,   payable  at   German-American 
Bank,  100  bbls.   Lard,  @  22.75,  2275.00. 

29.  Paid   our   note,   favor   R.   B.  Ashley    &  Co.,    1150.00,    with    interest  for   33    days,    in  cash. 
Interest,  6.33. 


IV  THEORETrCAL    ANB    PKACTICAL    KOOK-KEEPlNG. 

31.     Sold  Mason  &  Brown,  on  their  note  at  10  days,  payable  at  First  National  Hank,  150  bbls  Salt, 
@  1.40,  210.00. 

Inventory — 150  bbls.  Flour,  @    7.00, -  1050.00 

50     "      Pork,   @  11.50, 575.00 

125     "     Lard,    @  22.75, 2843.85 

100     "     Salt,     (a    1.25, •        -  125.00 


4593.75 

t 

Cash, 8320.38 

Net  Gain,  260.88 

APRIL 

1.  Student  and  B.  F.  Preston  have  this  day  formed  a  copartnership  for  the  purpose  of  conduci  ing 
a  General  Produce  business,  under  the  firm  name  of  Preston  &  Co.,  each  to  invest  20000.00.  Student's 
investment  consists  of  Warehouse  and  Lot,  valued  at  15000. 00,  upon  which  there  is  a  mortgage  of  5000. 00, 
having  two  years  yet  to  run  from  this  date;  an  account  against  B.  H.  Manning,  St.  Louis,  2963.50, 
due  April  15th  ;  a  note  against  Samuel  Drake,  Chicago,  for  5800.00,  payable  at  Live  Stock  National 
Bank,  at  one  month,  from  Marcli  4th,  with  interest,  now  worth  27.35,  in  addition  to  its  face,  and 
horses,  wagons,  harnesses,  scales,  trucks,  etc.,  for  use  of  warehouse,  valued  at  1149.15. 

B.  F.  Preston  invests  cash,  14400.00,  J.  C.  Rcid's  note  for  5000.00,  dated  March  1st  and  payable 
at  First  National  Bank,  due  June  30th,  without  interest.  Discount  allowed,  75.00;  an  account  against 
C.  W.  Norton,  New  York,  due  May  7th,  1792.87. 

B.  F.  Preston  owes  W.  S.  B:incroft,  Cincinnati,  on  his  note,  payable  at  Third  National  Bank, 
due  May  9th,  without  interest,  1125.00.     Discount  to  maturity,  7.13. 

1.  Deposited  cash  in  German- American  Bank,  5000.00. 

2.  Bought  for  cash,  6  carloads  No.  1  Red  Wheat,  2375  bush.,  @  85c.,  2018.75,  and  10  carloads 
Canada  Barley,  3960  bushels,  @  66c.,  2613.60.     Total  4632.35. 

Note. — Instead  of  keeping  a  general  Merchandise  account,  you  will  keep  an  account  with  each  kind  of  produce, 
as  Wheat,  Corn,  Barley,  etc. 

3.  Bought  of  Granger  &  Co.,  Minneapolis,  2000  bbls.  Flour,  @  5.25  per  bbl.  Gave  in  payment 
our  check  on  German-American  Bank  for  4000.00.  J.  C.  Reid's  note,  5000.00,  discount  to  maturity, 
allowed  G.  &  Co.,  73.33,  and  currency  for  balance,  1573.33. 

5.  B.  H.  Manning,  St.  Louis,  has  failed,  and,  in  common  with  other  creditors,  we  have  decided 
to  accept  80  per  cent,  of  our  claim,  for  which  a  draft  on  New  York  has  been  received.  Student  having 
guaranteed  the  account,  he  must  bear  the  loss.  Account,  2963.50,  discount,  592.70,  amount  of 
draft,  2370.80. 

7.  Sold  Guernsey  &  Co.,  Brooklyn,  on  their  acceptance  at  30  days,  500  bbls.  Flour,  @  5.75, 
2875.00. 

9.  Received  draft  on  New  York,  from  Live  Stock  National  Bank  of  Chicago,  for  jiroeecds  of 
Samuel  Drake's  note  of  5860.00,  due  on  the  7t]i  inst.  Interest  collected,  32.23,  Bank  charges  5.00  for 
collection  and  5.00  for  exchange  on  draft.     Amount  of  draft,  5882.23. 

11.  Sold  Prescott  &  Smith,  Newark,  2  carloads  Red  Wheat,  1152  bushels,  @  92c.,  1059.84,  and  3 
carloads  Canada  Barley,  1180  bushels,  @  72c.,  849.60.  Total,  1909.44.  Received  Ballard  &  Jones' 
'note,  favor  P.  &  S.,  and  indorsed  by  them  for  1500.00,  dated  March  17th,  at  two  months,  payable  at 
Manufacturer's  Bank,  Newark,  less  discount  to  maturity,  and  their  check  on  Newark  National  Bank, 
for  balance.     Discount,  9.75,  check,  419.19. 

14.     Bought  for  cash,  8  carloads  Oats,  3864  bushels,  @  41c.,  1584.24. 

16.     Sold  Nichols  &  Co.,  Boston,  at  60  days,  1000  bbls.  Flour,  @  5.90,  5900.00. 

18.  Wishing  to  pay  the  mortgage  on  the  warehouse,  which  will  not  mature  until  two  years  from 
the  1st  inst.,  we  offer  50.00  in  addition  to  the  face  and  interest  to  date,  which  is  accepted.  Interest, 
15.00,  Cash  payment,  5065.00. 

22.  Received  from  Wilson  &  Rockwell,  Monroe,  5  carloads,  1964  bush.  Wheat  to  be  sold  on 
commission.     Paid  freight,  61.65,  drayage,  25.00  in  cash. 


THEORETICAL    AND    PBAOTICAL    BOOKKEEPING.  V 

29.  Stiuleufc  invests  593.70  in  cash,  the  amount  of  the  discount  on  B.  H.  Manning's  account. 

Inventory— 1223  bu.  Wheat,  @  85c., -  1039.55" 

2780  bu.  Barley,  @  C6c., 1834.80 

500  bbls.  Flour,  @  5.25, 2625.00 

3864  bu.  Oats,  @  41c., 1484.24 

Horses,  Wagons,  Scales,  etc., 1149.15 

Warehouse,    ---■-. 15000.00 

Cash  on  hand, 5723.35 

Cash  in  bank, 1000.00 

Net  Gain, 985.61 

MAY. 

1.  Mr.  F.  E.  Thomas  is  this  day  received  as  partner  in  the  business,  giving  each  of  the  present 
proprietors  his  note  at  six  months,  with  interest,  for  such  an  amount  as  will  equalize  the  investments; 
to  Student,  6830.94,  and  to  B.  F.  Preston,  6830.93. 

3.  Sold  for  cash,  the  5  carloads,  1964  bushels,  Wheat,  received  from  Wilson  &  Rockwell,  @  93c. 
per  bush.,  1826.52. 

5.  Deposited  cash  in  German- American  Bank,  4500.00. 

6.  C.  W.  Norton,  being  unable  to  pay  his  account,  1792.87,  due  to-morrow,  sends  us  a  joint  and 
several  note,  made  with  interest  at  two  months,  payable  at  Ninth  National  Bank,  Philadelphia,  signed 
by  himself  and  VV.  S.  Newcomb,  which  we  receive  in  settlement. 

8.  Remitted  by  our  check  on  German-American  Bank,  for  amount  due  to-morrow  on  B.  F. 
Preston's  note,  favor  W.  S.  Bancroft,  1125.00. 

10.     Received  cash  for  Guernsey  &  Co.'s  acceptance,  due  to-day,  2875.00. 

13.  Shipped  Randall  &  Reed,  New  York,  to  be  sold  on  our  account,  4  carloads  Red  Wheat,  1333 
bush.,  invoiced,  @  85c.,  1039.55.     Paid  insurance  in  cash,  5.00. 

15.  Rendered  Wilson  &  Rockwell  an  account  sales  of  the  5  carloads  Wheat,  received  from  them  to  be 
sold  on  commission.  In  addition  to  freight,  61.65,  and  drayage,  35.00,  paid  when  the  Wheat  was 
received,  we  charge  3  i)er  cent.  Commission,  36.53,  Storage,  35.00,  and  Insui-ance,  9.00.  Remitted 
consignors  our  check  on  German-American  Bank  for  net  proceeds,  1669.34. 

18.  Sold  Strong  &Wood,  Fairport,  4  carloads  Barley,  1539  bush.,  @  77c.,  1186.03,  on  their  accept- 
ance at  60  days,  indorsed  by  W.  L.  Pinson,  payable  at  DeLand  National  Bank,  Fairport. 

20.  Ballard  &  Jones'  note  due  to-day  has  been  protested  for  non-payment.  Protest  fees,  1.60,  paid 
by  us  in  cash. 

23.  Ballard  &  Jones  ha^'e  paid  their  note  due  the  20th,  1500.00,  protest  charges,  1.60,  and  three 
days  interest,  75c.,  by  new  note  at  GO  days,  with  interest,  payable  at  Manufacturer's  Bank,  Newark,  for 
750.00,  balance  in  cash,  752.33. 

27.  Sold  Jones  &  Co.,  on  their  check  on  Trader's  Bank,  4  carloads  Oats,  1931  bushels,  @  45|c., 
874.06. 

30.  Received  from  Randall  &  Reed,  New  York,  an  account  sales  of  wheat  shipped  them  on  com- 
mission, on  the  13th  inst.     Our  net  proceeds,  1224.15,  due  by  equation.  June  15th. 

Inventory— 1241  bu.  Barley,  @  66c, 819.06 

500  bbls.  Flour,    @  5.25, 2625.00 

1943  bu.  Oats,      @  41c, -       796.03 

Warehouse, ■ 15000.00 

Horses,  Wagons,  Scales,  etc.,    -------     1149.15 

Cash  on  hand, 7544.68 

Cash  in  bank, -     2705.66 

Net  Gain, 506.63 


VI  THEORETICAL    AND    PRACTICAL    BOOKKEEPING. 

JUNE. 

1.  B.  F.  Preston,  wisliing  to  retire  from  the  business,  proposes  to  sell  his  interest  to  the  other  two 
partners,  receiving  one  half  cash  and  note  for  balance,  which  is  accepted.  The  note  for  such  balance 
will  be  signed  by  the  new  firm;  the  style  of  which  is,  Thomas  &  Co.     Cash,  6915.38;  Note,  6915.37. 

4.  Nichols  &  Co.,  propose  to  pay  their  account,  5900.00,  due  15th,  providing  we  will  allow  them 
one-quarter  per  cent,  discount  on  its  face,  which  is  accepted.     Discount,  14.75,  cash,  5885.35. 

7.  Paid  insurance  for  one  year  from  April  1st,  on  warehouse,  valued  at  11000.00,  in  cash. 
Premium  1  j^er  cent.,  110.00.  Also  paid  premium  for  one  year,  obtained  April  1st  on  an  open  policy 
of  insurance  on  contents  of  warehouse.     Policy,  10000,  Premium,  100. 

10.  Received  from  Pillsbury-&  Co.,  1000  bbls.  Flour,  invoiced  at  5.10,  to  be  sold  on  their  "jc,  and 
risk.     Paid  freight  in  cash,  213.00;   our  cartage,  30.00. 

13.  Bought  of  Cook  &  Co.,  on  our  acceptance  at  30  days,  payable  at  German-American  Bank,  5 
carloads  Eed  Wheat,  3116  bushels,  @  93c.,  1967.88. 

15.     Eeceived  from  Randall  &  Reed,  cash  for  proceeds  of  shipment  due  to-day,  1334.15. 

18.  Owing  to  the  unfavorable  appearance  of  the  wheat  market,  we  have  determined  to  sell  the 
2116  bushels,  now  on  hand,  at  present  price,  89c.,  for  which  we  receive  cash,  1883.34, 

21.  Messrs.  Pillsbury  &  Co.,  being  in  need  of  funds,  notify  us  that  they  liave  drawn  on  us  for 
3500.00,  at  14  days  from  the  18th  inst.,  on  account  of  the  invoice  of  Flour  received  from  them  on  the 
10th  inst.     Accepted  the  draft,  payable  at  German-American  Bank. 

23.     Sell  D.  Collins,  Winchester,  for  cash,  3  carloads  Barley,  813  bushels,  @  77c.,  636.01 

26.     Sold,  for  cash,  500  bbls.  Flour,  Pillsbury  &  Co.'s  consignment,  @  5.90,  3950.00. 

30.  The  warehouse  and  contents  were  last  night,  totally  destroyed  by  fire.  The  insurance  compa- 
nies have  this  day  adjusted  the  losses  which  were  paid  in  cash,  as  follows:  Warehouse,  11000.00;  Scales, 
Trucks,  etc.,  200.00;  Contents,  6763.63—3600.00  of  which  was  on  ajc  of  500  bbls.  Flour,  belonging 
to  Pillsbury  &  Co.,  which  were  stored  in  the  warehouse,  and  covered  by  the  open  policy  of  insurance; 
and  the  remaining  4163.63  was  ai)portioned  as  follows:   Flour,  2950.00;  Oats,  884.07,  Barley,  339.50. 

30.     Deposited  in  German- American  Bank,  10000.00. 

30.  Closed  Pillsbury  &  Co.'s  consignment,  and  rendered  consignors  an  account  of  sales.  Our 
charges,  in  addition  to  freight  and  cartage  already  entered,  are:  Commission,  3  per  cent,  on  500  bbls. 
sold,  59.00;  Storage,  5.00;  Insurance,  13.75.  Pillsbury  &  Co.'s  net  proceeds,  3741.35,  remitted  by  our 
check  on  German-American  Bank. 

The  books  will  now  be  closed,  preparatory  to  closing  out  the  business. 

Inventory — Warehouse  Lot,  valued  at, 4000.00 

Horses,  Wagons,  etc.,  valued  at, 900.00 

Net  Gain,    -         - 367.18 

Students  present  worth, 13964.32 

B.  F.  Thomas  present  worth, 13904.33 

Cash  in  bank, 9964.41 

Cash  on  hand, -         -  20719.58 


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rec'd  arc.  MAR  V 

1963 

UNIVERSITY  OF  CALIFORNIA,  BERKELEY 
FORM  NO.  DD6,  60m,  12/80        BERKELEY,  CA  94720 

rE 


02756 


INSTRUCTIONS  TO  STUDENTS. 


% 


I.    The  rooms  will  be 
A.  M.  to  4  P.  M. 

2    Students  should 
Street,  between  Kearnr 

3.      i  tie  d'tors 
foIIowA  :  :a  0  ■►'oloi 


udy  every  week   day,  except  Saturday,  from  8J  o'clock 

iir  time  as  not  ti)  be  present  at  the  College  or  on  Post 
icry  Streets,  before  tlie  opening'  o!  the  school-rooms. 

1  be  closed  at  the  commencement  of  each  session,  as 
.  M. 

after  the  dodrs  are  closed. 


5.  Recitatioi)- 
ing  until  12  o'cly 

6.  Pupi)-' 
will  observV 


reach 
ilird  ' 


235965 


ciliately  after  roll-call,  and  will  continue  in  the  morn- 
I  until  4  o'clock  P.  M. 

•■nn-call,  either  at  the  forenoon  or  afternoon  sessions, 
lerence  to  deportment,  as  after  roll-call. 

,  iiiu'  by  boat  or  rail,  when  it  is  impossible  for  them  to 
.)il  r;ill  at  the  morning  session,  will' have  appointed  a  spec- 
A  at  time,  they  will  not  be  considered   tardy.      After  that 

tlir»  --''-■'  ut)t  present  they  will  be  marked  tardy. 

,.  ith  his  parents  or  guardian,  or  within  reach  of  them,  shall  be 
lie  allowed  until  the  following  morning  to  present  his  excuse  if 
.  I'f  being  tardy. 

,vith  parents  or  guardians,  or  within  reach  of  them,  if  absent  any  one 
t,-,  must  brinjf  written  note  or  excuse  for  such  absence  from  them  before 
ame  their  stuiiies. 

■ivinu-  parents  or  guardians,  but  not  residing  with  them,  if  absent  from  any 
-  ..c  tardy  at  any  session,  must  write  out  their  excuse  in  proper  form,  forward  it 
TO  parent  or  j^uardian  to  be  countersigned,  and  return  it  to  their  teacher  at  the  earliest  possi- 
ble moment. 

11.  Pupils  having  no  parents,  or  being  in  charge  of  no  person,  will  be  held  personally 
responsible,  and  U  absent  or  tardy  at  any  session,  must  write  out  their  own  excuse  in  proper 
form,  and  present  it  to  their  teacher  before  resuming  work. 

12.  If  pupils  are  absent  from  school  at  any  time  without  having  given  a  written  notice 
of  such  intended  absence,  the  time  they  are  thus  out  of  school  will  be  their  own  loss. 

13.  Absence  from  bchoul  for  two  consecutive  days  will  subject  the  student  to  the  loss  of 
his  seat,  unless  an  excuse  is  sent  to  the  College  within  that  time. 

14.  A  pupil  when  writing  an  excuse  to  leave  his  seat,  will  write  it  in  ink,  and  give  the 
date  and  time  of  day,  state  where  he  wishes  to  go,  and  give  the  number  of  minutes  he  wishes 
to  be  out  of  his  seat. 

15.  Apunil  when  writing  an  excuse  to  communicate,  will  write  it  in  ink,  and  give  the 
date,  time  of  day.  the  number  of  minutes  he  wishes  to  communicate,  to  whom,  and  for  what 
purpose  ;  and  during  such  communicatiun,  he  must  refrain  from  all  loud  talking. 

16.  Pupils  ai  e  required  to  be  orderly  and  prompt  in  passing  to  and  from  classes. 

17.  Students  are  requested,  as  far  as  possible,  to  procure  books  and  stationery  in  the 
morning  before  the  commencement  of  school,  at  noontime,  or  at  the  close  of  school. 

18.  Any  student  cutting,  or  in  any  way  disfiguring,  any  article  ot  furniture  belonging  to  the 
College,  njarking  (>r  writing  on  the  desks,  walla,  or  woodwork,  in  any  of  the  rooms  or  passages 
of  the  institution,  will  be  subject  to  expulsion. 

19.  Ignorance  of  the  rules  and  regulations  of  the  institution  will  in  no  case  serve  as  an 
excuse  for  non-observance. 

20.  Pupils  are  particularly  reminded  that  the  school-rooms  are  open  for  work  only,  this 
being  for  their  best  interests;  therefore,  pupils  not  at  work,  are  out  of  their  line  of  duty,  and 
must  expect  correction  for  their  own  good. 

Note. — The  word  "guardian,"  as  used  in  all  rules  and  regulations  of  the  College,  is  un- 
derstood to  mean  any  person  who  may,  directly  or  indirectly,  have  charge  of  any  pupil. 


